Global Agenda Council on Institutional Governance Systems Effective Leadership in International Organizations

April 2015 © World Economic Forum 2014 - All rights reserved.

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REF 211014 Contents

5 Executive Summary

6 1. The Effective Leadership Project

6 a. Global Governance in the 21st Century

6 b. Why Focus on Leadership?

7 c. Constrained Leadership

7 d. How Are “Effective Leadership Structures” Measured?

8 e. Methods for Assessing Organizations

8 f. Who Is Responsible for Delivering Effective Leadership Structures?

8 g. The Objectives of the Study

10 2. Emerging Good Practices

11 a. Selecting and Re-Electing Leadership on Merit

11 b. Managing Performance

11 c. Setting and Evaluating Ethical Standards

12 d. Developing and Retaining Talent

12 e. Setting Strategic Priorities

13 f. Engaging with a Wide Range of Stakeholders

13 g. Evaluating Independently and Effectively

14 3. Appendix: Leadership Practices

14 a. African Development Bank Group

19 b. Asian Development Bank

24 c. European Bank for Reconstruction and Development

28 d. Inter-American Development Bank

32 e. International Monetary Fund

38 f. International Organization for Migration

42 g. United Nations Development Programme

45 h. United Nations High Commissioner for Refugees

50 i. World Bank Group

58 j. World Health Organization

60 k. World Trade Organization

66 References

Evaluation of Organizational Structures that Enable Effective Leadership 3 Project Team Xue Lan, Dean, School of Public Policy and Management, Tsinghua University, People’s Republic of China Ngaire Woods, Project Leader; Dean, Blavatnik School of Yu Keping, Director and Professor, China Center for Global Government, University of Oxford, United Kingdom, dean@ Governance and Development, People’s Republic of China bsg.ox.ac.uk Zhang Haibin, Professor, School of International Studies, Shubhra Saxena Kabra, Council Manager, Global Agenda Peking University, People’s Republic of China Councils, World Economic Forum, shubhra.saxena@ weforum.org Acknowledgements Nina Hall, Fellow in Global Governance, Hertie School of Governance, Germany, [email protected] The authors are particularly grateful to the World Economic Yulia Taranova, Researcher, Blavatnik School of Forum for providing inspiration and supporting this project, Government, University of Oxford, United Kingdom, yulia. and the academic advisers, current and former officials who [email protected] have helped along the way. Conversations with several Miles Kellerman, Researcher, Department of Politics leaders, who provided insights into the challenges faced and International Relations, University of Oxford, United by leaders of international organizations, were particularly Kingdom, [email protected] inspiring, including those with Pascal Lamy, Gus Speth, Hugo Batten, Associate, McKinsey & Company, Australia, Takehiko Nakao, Helen Clark, Suma Chakrabati and Donald [email protected] Kaberuka.

Members of the Global Agenda Council on Sincere thanks go to the many officials from the Institutional Governance Systems following organizations who answered questions: African Development Bank (AfDB), Asian Development Ernesto Zedillo Ponce de Leon, Chair; Director, Yale Bank (ADB), European Bank for Reconstruction and Center for the Study of Globalization, Yale University, USA Development (EBRD), Inter-American Development Bank Robert C. Orr, Vice-Chair; Assistant Secretary-General for (IDB), International Monetary Fund (IMF), International Strategic Planning, United Nations, New York Organization for Migration (IOM), Organization for Economic Cyrus Ardalan, Vice-Chairman and Head, UK and EU Co-operation and Development (OECD), Multilateral Public Policy and Government Relations, Barclays, United Organisation Performance Assessment Network (MOPAN), Kingdom United Nations Development Programme (UNDP), United Ann M. Florini, Professor, School of Social Sciences, Nations High Commissioner for Refugees (UNHCR), Singapore Management University, Singapore World Bank, World Health Organization (WHO) and World David Kennedy, Director, Institute for Global Law and Trade Organization (WTO). The authors would like to Policy, Harvard Law School, USA thank the following current and former officials from these Pascal Lamy, Chair (2012-2013); Honorary President, organizations: Bjorn Gillsater, Brian Gleeson, Kazu Sakai, Notre Europe - Jacques Delors Institute, France Margret Thalwitz, Inge Kaul and Max Watson. Jeffrey D. Lewis, Director, Economic Policy, Debt and Trade Department, Poverty Reduction and Economic A number of academic experts generously offered their Management Network, World Bank, Washington DC insights and feedback, which made this study possible: Lin Jianhai, Secretary, International Monetary Fund, Michael Barnett (George Washington University), Sam Daws Washington DC (University of Oxford), Carolyn Deere Birkbeck (University of Emmanuel E. Mbi, First Vice-President and Chief Operating Oxford), Michael Doyle (Columbia University), Tana Johnson Officer, African Development Bank, Tunisia (Duke University), Jérôme Elie (Graduate Institute), Martha Riyad Abdulrahman Al Mubarak, Chairman, Abu Dhabi Finnemore (George Washington University), Guy Goodwin- Accountability Authority, United Arab Emirates Gill (University of Oxford), Jane McAdam (University of New Arunma Oteh, Director-General, Securities and Exchange South Wales), Craig Murphy (University of Massachusetts, Commission, Nigeria Boston), Catherine Weavers (University of Texas, Austin), Katharina Pistor, Michael I. Sovern Professor of Law, and James Vreeland (Georgetown University). Columbia Law School, USA Qu Bo, Associate Professor and Deputy Director, China Finally, the authors thank the Blavatnik School of Foreign Affairs University, People’s Republic of China Government, University of Oxford, United Kingdom, and Gabriela I. Ramos Patiño, Chief-of-Staff and OECD G20 the Hertie School of Governance, Germany, for providing Sherpa, Organisation for Economic Co-operation and research support for this report. Development (OECD), Paris Nasser Saidi, President, Saidi & Associates, United Arab Emirates Jan Sturesson, Global Leader, Government and Public Services and Partner, PwC, Sweden Ngaire Woods, Vice-Chair (2012-2013); Dean, Blavatnik School of Government, University of Oxford, United Kingdom

4 Effective Leadership in International Organizations Executive Summary

Good leadership in international organizations is necessary, but not sufficient, for their success. Structures supporting leadership vary enormously across global agencies. This report highlights some of the best practices across 11 organizations that facilitate good leadership. It also underscores that international institutions could learn from each other’s practices across seven domains: (1) selecting and re-electing leadership on merit, (2) managing performance, (3) setting and evaluating ethical standards, (4) developing and retaining talent, (5) setting strategic priorities, (6) engaging with a wide range of stakeholders, and (7) evaluating independently and effectively.

Evaluation of Organizational Structures that Enable Effective Leadership 5 1. The Effective Leadership Project

a. Global Governance in the 21st Century b. Why Focus on Leadership?

Effective leadership in international agencies is crucial: the Over the last two decades, the world has suffered from a world relies on these organizations to ease cooperation global governance deficit. This deficit comprises a lack of – whether in ensuring pandemics are constrained, mail is the following: delivered to foreign countries, or citizens can fly safely to other countries. –– Adequate mechanisms to deal with issues of international peace and security To be effective, agencies need leaders who can identify –– Satisfactory mechanisms to anticipate and counter and deliver on organizational goals without the constraint global economic shocks of undue influence, by individual members or other –– Effective instruments to ensure important global public stakeholders. Yet, some IOs have not even defined the goods, not least in critical areas such as climate change leader’s role, let alone recruited or managed that person and public health on the basis of particular knowledge, competence and experience required to effectively lead the organization. In the early 2000s, it was expected that the international In addition, democratic election processes and strong community would embark on a comprehensive effort to accountability mechanisms are necessary to ensure that overhaul the multilateral system, with renewed rules and the interests of executive management are aligned with the institutions to address the challenges posed by evolving organization. geopolitical and economic circumstances. These ambitions included reform of World Bank and IMF governance; While good leadership is not enough for successful creation of a new world environmental institution; and international cooperation, it is necessary for effective ongoing attempts at United Nations (UN) Security Council governance. However, leadership performance in reform. Recent history suggests, however, that such a organizations is often buried behind arguments about which comprehensive overhaul will not take place anytime soon. country should get “the top job”. The presumption is that, once appointed, leaders have their hands tied by member Almost every effort to significantly transform the states, and will predominantly serve their patrons’ interests. mechanisms for international cooperation and coordination Indeed, leaders’ performance is seldom rigorously tested has failed. The floundering of the 2005 UN World Summit, or measured. Moreover, little attention has been paid to the collapse of the World Trade Organization’s (WTO) Doha the institutional features needed to promote effective and Round, the disappointing progress on climate change, and the non-fulfilment of early and indispensable G20 accountable governance. commitments all suggest that governments are not ready, or not willing, to close the growing governance gap, at least This project of the Global Agenda Council on Institutional within the next few years. Governance Systems has taken up the challenge. First, the project has identified ways in which leadership makes In other words, no transformative overhaul of international a positive difference in the performance of international institutions should be expected in the foreseeable future. agencies. Second, the research team has investigated In no way should the pertinent players give up on existing a sample of IOs, drawing out best (and other) practices institutions; rather, the only realistic alternative seems to that either illustrate or indicate a lack of high-performing 1 be incremental reform. Scarce political capital should leadership. be applied to improving the performance of multilateral institutions, as radical transformations of the existing overall framework cannot be counted on. Based on this notion, The report’s seven sections cover the positive practices this project addresses one aspect where incremental reform emerging in IOs that support good leadership. This seems not only necessary, but feasible: in the leadership of introduction sets out the conception of leadership, as well international organizations (IOs). as the study’s rationale, method and strategy.

6 Effective Leadership in International Organizations c. Constrained Leadership In addition, the Council and team sought to capture innovations in leadership across the organizational cases. Leaders influence their agencies’ operational and strategic direction. They work with member states to identify priorities Not all of the important elements could be measured. and set strategy, and translate this into operational goals, In fact, it was difficult to find a metric to measure the which in turn are monitored and evaluated as progress is degree to which leadership structures permit resistance made towards them. Leaders direct a bureaucracy and against “capture” by a powerful state, private companies see that it has sufficient staffing, expertise and financing to or vested interests; and this despite that many instances carry out mandated tasks. They also must consult and work exist of undue influences undermining an organization’s with other stakeholders. While their room for manoeuvring performance (an organization’s leadership can play a key is limited (see Figure), their actions and behaviour are vital role in ensuring this does not happen, or at least that it is to their organizations’ success. Finally, organizations that brought to the public’s attention). Some of this dimension depend on ad-hoc funding also constrain their leaders. of leadership is covered in the report’s reflections on ethical standards, setting strategic priorities (e.g. the proportion of Figure: Types of Forces that Constrain Leadership core vs earmarked funds) and procedures for electing an administrator, director-general (DG) or managing director (MD). Future research could investigate other measures Political of organizational independence and impartiality, such as whether heads of organizations should chair council or governing body meetings, and how effectively they

Social an can shape decision-making in these meetings to guard c economic Governments forces against special interests. Studies could also examine if members of IOs d Bureaucrati an organization’s leader is able to publish reports, policy positions or advice in the organization’s name, without prior

External 2 t stakeholder approval of member states.

IOs senior Leader s managemen Another important element of leadership is the “speed of renewal” and the capacity to adapt to changing external environments. This was very difficult to measure or compare High performance in a leadership role has a major impact on across the 11 different organizations, given the variety of an organization’s ability to deliver on tasks requested by its environments and issue areas. In the future, studies could member states. An IO with weak operational planning, high look at the extent to which IO heads can (and do) initiate staff turnover and vulnerability to special interests is unlikely projects, pilots or discussions to address emerging issues, to perform effectively. Not only do leadership governance and the leeway they have to shape these. Finally, the and effectiveness need more attention in international authors believe leaders play an essential role in ensuring organizations; a striking need also exists for more practice- their organizations collaborate with others to deliver focused comparisons across organizations so they can cooperation and other public goods. Future research, it is learn from each other. hoped, will identify ways to track governance in this area. An important caveat should be emphasized: improving leadership in IOs is just one part of improving their overall The report reflects on practices from a pilot group of performance. Leaders are heavily constrained, relying on international organizations. In some cases, good practice financing from the member states that select them. Some seems relatively straightforward. For example, for the IO boards “monitor” their leadership and organizations’ selection of an organization’s head: do clear and publicly architectures very closely, meeting weekly to discuss and available terms of reference (TOR) exist for both the position provide regular input to operational business, while others and a high-quality, exhaustive search process? As for may only convene several times a year. The enormous ethical leadership, are leaders required to sign and adhere differences in the broader governance structures of IOs, to the organization’s ethical codes, and publicly declare which greatly influence their operations, are noted in this any conflicts of interest and their financial assets? In some report. cases, good practices may vary enormously – for instance, d. How Are “Effective Leadership Structures” Measured? in how leaders attract and retain a diverse staff. This study benchmarks current practices and does not rank Through extensive deliberations, the Council and project organizations against each other, as significant differences team have identified seven indicators of effective leadership in the structure, size, nature and scope of IOs make ranking structures: problematic. However, some common principles and structures could strengthen leadership possibilities in all 1. Selecting and re-electing leadership on merit organizations. 2. Managing performance 3. Setting and evaluating ethical standards 4. Developing and retaining talent 5. Setting strategic priorities 6. Engaging with a wide range of stakeholders 7. Evaluating independently and effectively

Evaluation of Organizational Structures that Enable Effective Leadership 7 e. Methods for Assessing Organizations The data for each question across the 11 organizations was analysed to identify variations in practice. The objective was The Council identified seven indicators contributing to not to derive an “ideal” best practice, although management effective leadership. The research team then determined and public administration studies were also consulted. questions for assessing IOs on each of the indicators and The report is limited to practices in IOs from which other for using as the basis for studies of leadership practices organizations could learn. Readers and organizations are in 11 organizations (see appendix): African Development invited to contribute input3 from practices and examples not Bank (AfDB), Asian Development Bank (ADB), European discussed in this report. Bank for Reconstruction and Development (EBRD), Inter- American Development Bank (IDB), International Monetary f. Who Is Responsible for Delivering Effective Leadership Fund (IMF), International Organization for Migration (IOM), Structures? United Nations Development Programme (UNDP), United Nations High Commissioner for Refugees (UNHCR), World An organization’s membership (represented on its board) Bank, World Health Organization (WHO) and World Trade and its senior management are collectively responsible for Organization (WTO). ensuring effective processes are in place. The membership or the board have responsibility for some criteria (election These organizations were selected because they cover and re-election procedures for heads); other indicators fall a broad range of issue areas (from health to migration under the scope of senior leadership (ethical codes, conflicts and development), vary in size, and include regional and of interest), and some are shared (setting strategic priorities). international bodies. However, the selection was not In some organizations, a “grey zone” may exist, where it intended to be representative of all intergovernmental is not always clear who is responsible – the leader, senior organizations, but rather to provide a basis for the pilot management team, membership or board. By identifying study of best practice in governance. Inclusion of other these priority areas, organizations should be able to focus organizations in future studies is encouraged. attention and clarify who will take the lead.

A research team initially conducted a desk-based study, g. The Objectives of the Study looking for publicly available evidence of each indicator. Follow-up interviews with former and current senior officials This study aims to inspire greater attention to leadership in of the organization, as well as key stakeholders and international organizations, instigate learning across them academic experts, were conducted. Their inputs were used and draw attention to good practice. Many organizations in to identify additional documentation of formal processes, this study are already engaged in reforming their governance and to identify relevant informal practices. Although the mechanisms, strategic frameworks or other organizational report is focused on the presence of formal processes processes. This study highlights leadership structures as (documented officially, wherever possible, when sufficient one element that should be taken into account. evidence is available), the differences between formal It is planned to share results with relevant forums, bringing and informal processes have also been captured. The together boards and committees in the UN system, and evidence included in the appendix is separated into two across international financial institutions and development columns: “published rules”, based on official organizational banks. Apparently, a number of these organizations are documents; and “other factors”, which draw on a range already sharing practices. It is hoped that the study will of sources – including interviews with experts on the foster a more systematic comparison and identification of organization and staff – to gain more subjective insights good practice, thus enabling more direct learning. into informal practice. Where possible, “decoupling” (when formal rules are in place but are not to be implemented in practice) is noted. While attempts were made to gather the most recent information for each organization, the study may not capture all organizational practices, as many of the organizations were undergoing significant reforms. A summary of good, formal leadership practices is shown in the Table.

8 Effective Leadership in International Organizations Table: Good Leadership Practices among the 11 Selected Organizations

Indicators Examples of Formal Practice �Selecting and re-electing leadership on merit 1. Organizations should search for candidates with Criteria/TOR for leadership are published online specific, relevant competencies, and test these against Selection process updates are available online clearly defined criteria through an inclusive, exhaustive Passport blind selection of candidates is done process. Other candidates are always considered in re-elections

Performance is given formal consideration in re-elections

�Managing performance 2. Organizations should have clear expectations of Leaders are expected to set performance expectations in performance, which are transparent and consistent with inaugural speech their goals, and facilitate leadership accountability. Boards conduct regular individual performance appraisals

�Setting and evaluating ethical standards 3. Leadership should comply with clearly defined ethical Leaders are obliged to disclose financial assets and standards. conflicts of interest Leaders are obliged to adhere to a published code of ethics Compliance with the code of ethics is enforced �Developing and retaining talent 4. Leadership should attract, retain and develop Leaders carry out regular global staff surveys talent throughout the organization. Leaders ensure survey results are monitored and utilized

Leaders are obliged to participate in formal training programmes for their own professional development

�Setting strategic priorities 5. Leadership should have the authority and mechanisms Strategic documents include measurable objectives to shift strategic priorities due to changing circumstances. �Engaging with a wide range of stakeholders 6. Organizations should have structures that encourage Meetings between stakeholder organizations and a diverse management to engage with a wide range of range of civil society actors occur on a regular, established stakeholders. basis �Evaluating independently and effectively 7. Organizations should have structures that encourage Evaluation office reports directly to the board management to engage with internal and external Management must respond to evaluations evaluations.

Source: Authors

Evaluation of Organizational Structures that Enable Effective Leadership 9 2. Emerging Good Practices

a. Selecting and Re-Electing Leadership on Merit The IMF has been opening up its processes. In 2011, it published its first comprehensive terms of appointment Many international organizations have no selection process for its Managing Director.7 In addition to its Articles of that clearly searches for and tests candidates on relevant Agreement and By-Laws, which contain a standardized (and much-needed) leadership competencies in their job description for executive directors, the IMF published domain. Often, leaders are selected in a political bargaining complete terms of reference in the same year for the ethics process. However, some changes are under way. advisor,8 ombudsperson9 and director of the Independent Evaluation Office.10 The IMF already instituted a rigorous The review of leadership selection revealed four important process of candidate profiling in 2007, making available full practices, each of which is being used in at least one job descriptions, and the desired qualities and experience international agency: (1) the leadership role is clearly defined, of candidates. The executive board set out a timetable and (2) the competencies and experience needed to take up invited nominations from executive directors for the post the role are clearly stated, (3) the role and competencies of MD, interviewing those that did apply.11 However, the are openly advertised, and (4) the selection process is IMF’s good formal practice is undermined by the informal transparent and clear. convention that the organization’s European members, in consultation with the other members, ultimately select a WHO, for example, set out a code of conduct in 2011 to European as MD. ensure ethical and transparent nomination and election of leadership. It specifically notes that every candidate is In the WTO, all decisions, including selection of the DG, expected to provide supporting evidence to match each of are made by consensus of all members. If a consensus the published criteria for the Director General position. The cannot be reached in the appointed time, a provision executive board shortlists those candidates matching the allows for a vote by the General Council.12 In the 2012 DG criteria.4 selection process, WTO members officially nominated nine candidates, each of whom presented their vision for the In its selection process, the WTO actively seeks to reflect WTO at a council meeting in January 2013. In the final two its membership’s diversity. An official WTO document months of the process, the council chair consulted with (WT/L/509, published in 2002 and available online) invites members to build a consensus. The selection process nominations from across all regions and stipulates that, concluded with a council meeting in May, where the in the case of equally meritorious candidates for DG decision to appoint the new DG was taken. appointments, the diversity of WTO membership shall be Practices for re-election or reappointment are not particularly taken into account.5 The document also gives the clear time strong across organizations. Performance can be difficult to frame for the process to start nine months before, and be assess, as few international organizations have objectives completed 3 months prior to, the end of the incumbent’s for their leadership on this measure. WHO stands out in this term. The recent election of the WTO DG was a role model regard. During the re-election of its DG in May 2012, the of transparency: all stages were well documented and incumbent wrote a self-assessment that evaluated her first- exposed through a special page on the WTO website. term performance on the priorities she had set out; this was captured in a document and taken into account through the Although selecting its president remains non-exhaustive and re-nomination process. The AfDB now considers a range of without a clear formal process, the EBRD is introducing candidates alongside the incumbent for re-election, as does greater rigour at the vice-president (VP) level. For example, the EBRD, where Sir Suma Chakrabarti was selected over EBRD conducted an exhaustive review from over 850 the incumbent president in 2012. applicants for the position of VP of banking operations (a The more exhaustive, inclusive and meritocratic the process, post traditionally held by an American). The search was the better the chance of not only the best candidate passport-blind, and included psychometric testing and being chosen or reappointed, but also of full membership multiple interviews.6 being engaged to hold that candidate accountable for performance.

10 Effective Leadership in International Organizations b. Managing Performance In 2008, Ban Ki-moon, UN Secretary-General, established Senior Managers’ Compacts for many senior UN officials. Governments expect that heads of international These compacts outline the roles of UN department heads, organizations, once appointed, will deliver on their mandated although they do not cover UNHCR or UNDP. Heads goals. However, individual states often have divergent views must report if they are spending their budgets according on organizational priorities and the role of leaders, and to programme objectives.19 In addition, they are reviewed some states have greater influence over leadership selection on how well they promote gender diversity and follow and subsequent decision-making. It is thus critical that the geographic distribution requirements. The UN Secretariat’s membership and the leader agree together on performance Management Performance Board uses the compacts to expectations, particularly at the start of a new tenure. assess senior UN leaders annually.20 Furthermore, the leader’s responsibilities with respect to vision, goals and implementation need to be carefully c. Setting and Evaluating Ethical Standards differentiated from those of the board. Otherwise, lines of accountability and responsibility are blurred, and the board In recent years, a number of heads of major international can no longer evaluate the leader’s performance without organizations have resigned because of questions about evaluating its own.13 Setting performance expectations their ethical conduct. 21 Three sets of practices are can help prevent organizational capture (when the leader associated with upholding ethical standards: (1) an ethics becomes the instrument of a few states) and enable code; (2) a clear authority in charge of monitoring and performance management. enforcing it, and dealing with non-compliance; and (3) formal declarations of any conflicts of interest and financial assets Despite the proliferation of results-based management, of senior leaders. no organization in this study had an openly published formal procedure for setting performance expectations Every international organization examined in this study for the leader. However, all leaders were expected to obliges all staff and heads to adhere to a code of ethics. report regularly to member states on overall organizational However, not all codes are public, and not all are formally performance at board, council and other equivalent enforced. The EBRD has a defined formal code of conduct meetings.14 (updated in 2012), which is overseen by a chief compliance officer who reports directly to the president. TheWorld In some international organizations, incoming presidents or Bank Group has its Office of Ethics and Business Conduct, directors are expected to deliver a statement to the board an ethics helpline, a code of conduct for staff (2003) and or general council, setting out a vision and objectives for the Code of Conduct for Board Officials, which focuses on the organization during their tenure. Such a procedure, for disclosure policies.22 With women’s accession at the Group, example, took place at the WTO in 2009.15 In recent years, the documents have recently been refined to include sexual the president-elect of the AfDB also delivered a working plan harassment. Meanwhile, the WTO’s code of core values is at the swearing-in ceremony.16 only circulated internally. All UN staff are obliged to follow its code of conduct, and many UN agencies, such as UNHCR, If performance objectives are set, boards can conduct have set their own codes of conduct.23 regular performance appraisals to give feedback on a leader’s successes and failures. Regular management Some organizations require disclosures of conflicts of leaders’ performance is standard across the private of interest and financial assets. Declarations are filed and public sectors. A formal, annual process to evaluate annually at the AfDB, which also has an organization-wide chief executive officer performance exists in 80% of US whistle-blowing policy (2007), anti-corruption and fraud non-profit boards and 96% of Standard and Poor’s 500 framework (2006) and an office to investigate disclosures. companies.17 However, very few international organizations This was a product of a joint anti-corruption task force have institutionalized annual performance appraisals of (2006) of international financial institutions.24 In the UN their leaders. One study found that none of the major system, all senior officers must file an annual financial international financial institutions conducted individual disclosure statement with the UN ethics office.25 Those performance appraisals in 2008.18 who do not are charged and may be penalized by the UN’s Department for Administration and Management.26 The More recently, some organizations have sought to UNDP administrator and the UNHCR high commissioner address this deficit. Since 2009, the MD of the IMF has have voluntarily disclosed their financial assets publicly, and been evaluated annually by the board, based on agreed made them available online.27 However, these organizations performance objectives. As part of the feedback, the are exceptions: most leaders do not publicly disclose their MD also assesses the executive board’s performance. financial assets. The framework is tailored by job position and based on the IMF’s annual performance review template. Annual salary adjustments for IMF management are linked to the consumer price index, and allow for performance-based merit increases.

Evaluation of Organizational Structures that Enable Effective Leadership 11 d. Developing and Retaining Talent team that works closely with the evaluation department to design measures addressing current weaknesses in A core responsibility of leaders at IOs is to attract, develop programme delivery. and retain outstanding staff. Leaders can thus help to ensure their workforces have the capacity and diversity e. Setting Strategic Priorities to deliver on the organization’s vision and strategy, while proactively addressing gaps in capability.28 This Most organizations have a mission statement and strategic is a challenge for international organizations, where it is goals that identify the raison d’être and ultimate objectives. understood that particular countries should hold certain To deliver on these, the organizations’ heads must translate positions, and staff selection is seen as requiring a balance the overarching organizational mission into a clear, detailed of national diversity and merit. At worst, leaders may face and measurable operational plan, and evaluate progress pressure from states to hire particular individuals for high- on a regular basis. International organizations vary greatly level posts. in their ability to do this. Some organizations have very broad strategic documents, with weak strategic direction, IOs can attract, develop and retain talent in many ways – no measurable objectives and no mechanism to evaluate for example, through policies for fair and transparent staff progress. Others have developed more detailed and selection, and by ensuring diversity of staff at all levels. measurable strategies, with timelines and budgets. Board However, when trying to study staff diversity in gender members most often work with executive leadership to set and nationality across the 11 organizations, it was difficult strategic frameworks and evaluate progress towards them. to get accurate, comparable data for all organizations. Yet, their input varies greatly – in some cases, member For this reason, the use of staff surveys, while a limited states may lead on formulating strategic goals (e.g. IOM’s measure, was seen as evidence of senior managements’ 12-point plan), and in others, the executive director will take interest in staff welfare. Such surveys, as well as staff the lead (for instance, the UNDP). liaison organizations, are used by some organizations to monitor staff progression and ensure that it is, and is UNHCR and UNDP are committed to producing well- perceived to be, based on merit. UNHCR conducts staff developed strategic documents. UNHCR details objectives surveys every three years, and has done so since 2006. The in its Global Strategic Priorities, and evaluates progress agency has a committee dedicated to carrying out survey towards them in global annual reports and strategic reviews. recommendations and developing action plans.29 The High The priorities set out operational, support and management goals, and include specific “impact indicators” to evaluate Commissioner has tasked the Deputy High Commissioner progress.33 The agency has also established the Global with following up recommendations from this committee’s Management Accountability Framework (GMAF), which deliberations. Responses to UNHCR’s staff survey have “comprehensively maps accountabilities, responsibilities guided human resources reform and resulted in changes and authorities across the organization and relates them to to the agency’s postings and promotions procedures.30 the corresponding management policies and guidance”.34 UNDP’s annual global staff surveys are conducted by an It works at country, regional and global levels to clarify the external independent organization. The EBRD has recently lines of accountability, responsibilities and functions. In reprioritized staff surveys, conducting them annually rather addition, UNHCR has Focus, a software that integrates its than every three years.31 As yet, none of the international results-based management at country and international organizations examined makes staff survey results available levels. UNDP has a series of regular strategic plans covering online. about four years, and reports in depth on how it will implement, finance, measure and review progress towards these goals.35 Heads of organizations mentor, support and coach their staff. While few formal processes exist for this, evidence In recent years, the IMF produced the Global Policy Agenda, does show widespread informal practices in many the MD’s vision of the institution’s strategic priorities and organizations. For example, IOM’s director-general makes actions. It serves as the basis for the biannual International it a priority to open the training of new chiefs of mission, Monetary and Financial Committee ministerial meetings that outlines the organization’s vision and invites open dialogue review and set the IMF’s broad goals, which the executive with staff. 32 board‘s work programme subsequently operationalizes. This helps the IMF to respond swiftly to changing circumstances. Finally, leadership training that ensures the strengthening of Similarly, with its president setting priorities, the EBRD has necessary senior management skills is occurring in a few rapidly expanded lending to North African clients in need of greater assistance in their transition to democracy and free agencies. The IMF has recently progressed with leadership markets. The ADB’s 2008 report, Strategy2020: The Long- training programmes. Most leaders are supported with and Term Strategic Framework of the Asian Development Bank trained in organizational rules by their executive office staff 2008-2020, provided a 12-year framework, with measurable and/or their chief of staff when they arrive. For instance, organizational objectives, to guide the organization. A UNHCR’s chief of staff provides informal on-the-job training midterm review of the bank’s performance, presented at in UN rules and protocols to new high commissioners. the board of governors’ annual meeting in 2013, found that UNHCR’s Global Learning Centre in Budapest has 80% of ADB’s operations in 2008-2012 were conducted in consolidated the agency’s learning activities and the five core areas outlined in the original strategic agenda: programmes, and has a position dedicated to developing infrastructure, environment, regional cooperation, financial and delivering training programmes for senior management. sector development and education. Many organizations are prioritizing senior staff development. The EBRD, for example, has a learning and development

12 Effective Leadership in International Organizations An international organization’s flexibility is also influenced g. Evaluating Independently and Effectively by its funding model. Providing discretionary, or “earmarked”, funding can rapidly spur specific activities In recent years, most international organizations have and innovations. Discretionary and other tied funds – from recognized that independent evaluations can provide timely, 40 private institutions, other multilaterals or trust funds – may useful and robust information on their work. The World enable leaders to expand into new areas and adapt to Bank created the Operations Evaluation Unit in the 1970s changing circumstances when they are explicitly sought under its president, Robert McNamara (1968-1981), and renamed it as the Independent Evaluation Group in 2001. for this purpose. However, because discretionary funds are The same year, the IMF created an evaluation group, which tied to specific tasks, leaders may have little flexibility to it has subsequently and independently audited on two redeploy these funds with changing external circumstances. occasions.41 Organizations with a small core budget, and highly reliant on discretionary financing, would be expected to respond more Besides serving as external appraisals, evaluations are directly to donor demands to ensure their survival. also another way to ensure that members are aware of the governance, effectiveness, impact and use of their funds. Most organizations studied had a high percentage of The independence of these evaluations is critical and funds earmarked for specific issues or projects, implying important to maintain, as are the channels through which that leadership has less flexibility and discretion in setting evaluators’ findings are considered. priorities. Over 97% of IOM’s financing is from non-core 36 At the IMF, the Independent Evaluation Office (IEO) is contributions. However, the organization’s director- independent from management and reports to the board. As general has actively lobbied states for an increase in indicated in the IEO’s terms of reference, the office engages IOM’s core funding, and has also established an audit and with executive management, the board and staff when they oversight committee.37 Similar numbers are seen in other “respond to relevant parts of the evaluation”.42 organizations: in 2012, only 2% of UNHCR’s financing came from the UN regular budget, and 98% percent was At the World Bank and EBRD, independent evaluation voluntary; for WHO, 76% of financing was voluntary.38 teams report directly to the board of directors. The Independent Evaluation Group (IEG) at the World Bank WHO, as part of its extensive programme reform, has conducted a client survey in 2012 to determine both launched the “Financing Dialogue” initiative, spearheaded whether the bank was meeting clients’ needs and how by Director-General Margaret Chan. Among other clients perceived its impact, as one of the ways of engaging with the organization. At EBRD, engagement is done things, it aims to ensure that member states and other through links with key people, i.e. the chief compliance funders commit to fully aligning fund allocation to the officer reports directly to the president, as does the internal approved programme budget. Funders should make their audit team. The vice-president for risk also sits on the contributions public to increase transparency, and ensure executive committee. the predictability and flexibility of their funds.39 The AfDB has recently tried to strengthen independent f. Engaging with a Wide Range of Stakeholders internal and external evaluations. The Quality Assurance and Results department has established a round-table review Every multilateral organization engages in some way mechanism that brings together management from various with its members and a wider group of stakeholders, relevant departments to review evaluations and set out, including beneficiaries, private-sector organizations, non- where necessary, action to address them. governmental organizations (NGOs) and other civil society The ADB has internal and external reviews. The internal groups. Some do this more effectively than others. The compliance review panel investigates alleged non- benefits from positive, well-structured engagement include compliance by the bank in its operational policies and better information, better-quality collaboration, heightened procedures. It does not, however, investigate borrowing responsiveness, sharing responsibility, and better public countries, the executing agency or private-sector clients, understanding and cooperation with the agency. unless they are relevant to non-compliance. Externally, the Most organizations have formal and informal mechanisms Multilateral Organisation Performance Assessment Network to engage with stakeholders – joint projects with NGOs and (MOPAN) regularly evaluates the institution and individual other multilateral organizations, discussions and dialogues members, especially large donors such as the United at conferences, and structured forums to interact with Kingdom and Australia, and conducts regular assessments leaders of academia and civil society. But as no established to ensure their money is being spent safely and effectively. “most effective way” exists to conduct these engagements, Some organizations have recently taken steps to make sure the challenge is in measuring or attempting to report best they follow best practice. The UNDP, for example, revised practice. Evidence, however, points to the importance its evaluation policy in 2011 to establish the Evaluation of regular, formal meetings between organizations and Office’s independence and ensure that all evaluations have a diverse range of civil society actors. It becomes more a response from management. The office’s head reports difficult for civil society to have an impact when meetings are directly and independently to the executive board. The informal or irregular. administrator, however, is briefed before an evaluation is presented to the board, and the administrator’s office prepares a management response to evaluations. The administrator has the right to reply to evaluations, and discusses follow-up actions with the board.

Evaluation of Organizational Structures that Enable Effective Leadership 13 At the Center proposes a variety of reforms a variety of reforms proposes 45 Strategy for 2013-2022,

History of leadership financial crises, compounded by major In the early to mid 1990s, AfDB faced severe management and board, Distrust among shareholders, management problems. as well policy and controls, had weakened executive functions, procedures staff and oversight functions. By the early 2000s, AfDB fixed its balance sheet This strategic rating via mechanisms for institutional reform. its AAA credit regained president. under the current initiative has been reinvigorated Sudan, 1964-1970); Abdelwahab Mamoun Beheiry (from were: presidents Previous (Ghana, 1976-1979); Godwin 1970-1976); Kwame Donkor Fordwor Labidi (Tunisia, capacity, 1979-1980); WillaGondwe (Malawi; caretaker Mung’Omba (Zambia, 1980-1985); Babacar N’diaye (Senegal, 1985-1995) and Omar Kabbaj (Morocco, 1995-2005). is Donald Kaberuka (Rwanda, 2005-to date). president The current trajectory Current finance minister in the decade following genocide, has Kaberuka, Rwanda’s lending to the and exponentially increased given the AfDB international prominence, Under his leadership, the bank has since taking over as president. private sector, recent votes to as evidenced by its shareholders, confidence from more received number of African A growing its resources. its capital base and to replenish increase countries now see the bank as a lender and adviser of first choice, although it has in strategy, covered Bank. The AfDB’s than the World fewer resources Transformation: of Africa’s session will take place in Abidjan of leadership mechanisms. The next board September 2014.

44

43

Appendix: Leadership Pratices African Development Bank (AfDB) 3. a. Organization development bank founded in 1963 to foster economic The AfDB is a regional also consists of the integration on the continent. The group and regional growth Fund. African Development Fund and Nigerian Trust Governance Owned and financed by 79 member countries (54 African 25 non-African), having temporarily moved Tunisia, in Tunis, headquartered the bank is currently offices, It has 37 field headquarters in Abidjan, Côte d’Ivoire. its official from there 56 departments, and an centres, resource regional 2 6 customized liaison offices, Tokyo. in office external representation of governors, is the board organizational structure At the top of AfDB’s of economic, financial and which comprises ministers and high-level officials of governors countries. The board shareholder development institutions from meets once a year and delegates day-to-day decision-making to 20-member who is always an African and elected by The president, of directors. board of directors. of governors, chairs the board the board Length of leadership mandate five-year term. A renewable Income cumulative authorized capital was $103 billion, As of December 2012, the AfDB’s while the subscribed capital stood at $100.2 billion (60% by regional members). members and 40% by non-regional Number of staff as of December 2012. staff, 2,068 regular

14 Effective Leadership in International Organizations Other factors

50 states 51 proposes proposes Medium-Term Strategy Medium-Term 47 Each AfDB member country, 46 49 only states that it should be “a person 48 Agreement AfDB People Strategy 2013-2017 AfDB Ten-Year Strategy (TYS) for 2013-2022. AfDB Ten-Year with the advice of a high-level panel eminent which are transparent and consistent with MO/IO’s overarching goals and which facilitate leadership overarching and consistent with MO/IO’s transparent which are Published rules position are nor criteria for the president’s Neither terms of reference found openly published. The founding voting power. Full membership, but with different Agreement Establishing the African Development Bank (1963) “by a majority of the of governors elects the president that the board total voting power of the members, including a majority members”. voting power of the regional has an equal number of basic votes (625) in addition to the/a however, The bank lists to its paid-in shares. number of votes proportionate table in a transparent voting powers of each state in its annual reports based on subscriptions and contributions. No. The establishing of the highest competence in matters pertaining to activities, management and administration of the Bank shall be a national member state”. a regional for setting performance expectations. procedure is no official There In practice, candidates outline the issues or themes they consider is expected to outline their working important, and the president-elect plan at the swearing-in ceremony. has taken things further along with concrete president The current (a) the elaboration of steps in this direction: 2008-2012 (MTS) people; and (b) the In addition, the new to “transform the leadership statement into tangible actions that on an ongoing basis”, and that “each managers can enact with staff leader and manager will have clear people management goals in their and goals”. annual objectives that link to these standards searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process. an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches performance expectations, leadership selection process leadership selection process Indicator The Does the Multi-lateral Organization/ International Organization (MO/IO) publish the criteria/terms of reference for leadership online? of the membership What percentage is involved in leadership selection and in practice? re-election Is there a time-bound, published and Is there for leadership exhaustive process selection that weighs competence against the published criteria? The leader has clear accountability. Do the leaders set clear performance expectations for themselves, which and consistent? transparent are an expectation that the leader Is there goals of the translates overarching organization into a manageable and clear strategy? I. 1 2 3 II. 1 2

Evaluation of Organizational Structures that Enable Effective Leadership 15

53 54 proposes proposes This principle 52

AfDB People Strategy 55 “the Bank, its President, “the Bank, its President,

to meet changing circumstances states AfDB People Strategy 2013-2017 the AfDB President determines the the AfDB President Agreement programme and receives annual feedback on performance and receives programme Agreement (implementation began in the 3rd quarter of 2013). (implementation began in the 3rd shift strategic priorities Yes. The establishing Yes. in the political shall not interfere and staff officers Vice-Presidents, of any member; nor shall they be influenced in their decisions affairs by the political character of member concerned”. Integrity and Ethics the Staff through of impartiality is enforced (SIEO) and the Anti-Corruption Department that investigates Office misconduct. staff practices and related allegations of prohibited organization- an is There the bank. of member staff for each equal Yes, wide whistle-blowing policy (2007), anti-corruption and fraud to look into the above. framework (2006) and an investigation office (2006). The of a joint IFI anti-corruption task force This was a product as well a 2007 Bank also has a 1999 code of conduct for staff, code of conduct for executive directors. Not formally, but the new the “leadership behaviours will be translated that in the near future will be measured and progress requirements, into specific behavioural and employee engagement indices management effectiveness through and 360 feedback, supported by development interventions.” Each VP now has to sign a “Performance Contract” annually with the president. No evidence. mechanisms established, but supplying “managers with No official confidential help to become more coaches or mentors to provide is one of the initiatives new effective” 2013-2017 No evidence. No evidence. structural changes in the Bank. Due to Mainly through Yes. establishing as well the functions and responsibilities organizational structure, offices. and country representation regional performance management is based on transparent processes and metrics processes is based on transparent re-election re-election Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? The leader has a defined Is the leadership subjected to annual performance appraisal? Leadership performance management criteria Are by the full membership in considered process? the re-election other qualified candidates Are in the re-election considered process? The leader has the authority and mechanisms to Does the leader have authority to shift strategic priorities in light of external changes? Is remuneration or benefits tied to Is remuneration the outcomes of performance management programme? coaching and Is the leader offered development opportunity to address weaknesses over time? 1 1 1 3 4 III. 2 3 IV. 2 V.

16 Effective Leadership in International Organizations goals is: to put focus on 59

60 Results Measurement the fundamental benchmark against – There have been a number of staff surveys in the have been a number of staff There planning to institutionalize the past and we are engagement (staff and include results process survey) as part of our Framework which we assess our own performance. One of the 2013-2022 Strategy “performance priorities, talent management and succession planning”. 57 will monitor y by moving over the The most recent staff 8 5 Trust Fund Reform polic Trust . Strategy for 2013-2022 Results Management Framework through-out the organization through-out There has been an increase in trust funds capital 2010 – has been an increase There 56 Yes. For example, the Yes. implementation of the new rolling plan and assess the in the 3-year planning horizon reflected of the institution. development effectiveness entrusted to it under Article 8 The Fund has available resources (1963), which empowers the Fund to of the founding Agreement State Participants, including grants from other resources receive any public or private body non-participating countries, and from bodies. a trust funds reform. to 2009 – that triggered 73% compared donors As of 2012, the Bank mobilized a total $127.7 million from the existing thematic ($130 million) and bilateral ($22.6 to replenish Funds. million) Trust By the end of 2012, African Development Bank had made under its substantial progress Funds most of tied bilateral funds to multi-donor Trust away from (for example, South-South Cooperation thematic in nature which are in March by the Board Fund with Brazil ($6 million) approved Trust 2011). survey was conducted in 2007. In 2010 President The first staff Yes. corporate accountability exercise, Kaberuka committed to a regular survey. involving both client survey and a staff survey was completed in December 2013 with results expected to be published in February 2014 No evidence. attract, retain and develop talent attract, retain Does the MO/IO have processes Does the MO/IO have processes that facilitate implementation of new strategic priorities? set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results Is the leader assessed on mentoring staff? and coaching of subordinate 1 2 3 VI. 2

Evaluation of Organizational Structures that Enable Effective Leadership 17 that the Bank through through

62 m that brings 63 Management Action Record (MAR) and a

internal/external evaluations Roundtable Review Mechanis Independent Review Mechanism (IRM)

engage with diverse range of stakeholders has established a Management Response Framework for Enhanced Engagement with Civil Society Organizations (2012), The document encourages the staff (management included) to engage with stakeholders. The document encourages the staff 61 MO/IO has structures that encourage leadership to to the No. According and institutionalizing systematic CSOs engagement, but aims at strengthening has no mechanisms to ensure it. Compliance Review and Mediation Unit (CRMU) administers the Bank to comply with its financed by the AfDB can request by a project which people adversely affected own policies and procedures. MO/IO has structures that engage leadership thoroughly with to deal with both internal/independent and externalThe Bank has structures evaluations. is a For independent evaluations there The MAR sets out time-bound actions the Bank will (or not) is published and discussed with the Board. to Recommendations made by Independent Evaluators. Management and Evaluators then take in response jointly track implementation of these Management Commitments. For external Evaluations (e.g. UK Multilateral Management Responses (though the Bank prepares Australian Multilateral Aid Review or MOPAN) Aid Review, not usually an MAR). Quality Assurance and Results Department the evaluations and set out, where departments to review various relevant together management from them. necessary, action to address VII. VIII.

18 Effective Leadership in International Organizations , told China 69 70 Ultimately, this would 76 However, Robert Orr, US Robert Orr, However, 73

74 Further, at the 47th Annual Meeting of the Board of at the 47th Annual Meeting of Board Further, 75

71 : “The Chinese have long wanted [control of] the ADB.” : “The Chinese have long wanted [control For example, Eswar Prasad, Tolani Senior Professor of Trade Policy, of Trade Senior Professor For example, Eswar Prasad, Tolani 68 Nakao has publicly welcomed the new bank. 72 Financial Times The election of Nakao, the ninth-consecutive uncontested Japanese candidate in a has led many to question the informal convention of Japan selecting ADB row, president. Cornell University, and contributor to the Asian Development Bank Institute the has not publicly confirmed this desire. However, during an address at the ADB’s at the ADB’s during an address However, has not publicly confirmed this desire. Jiwei Lou noted: “Emerging Chinese representative 2014 Astana conference, financing partners, but in a position to be ADB’s are economies in the region of ADB’s the reform through need to be increased their voice and representation for responsibilities so as to enable them undertake more governance structure development.” ADB’s Investment for an Asian Infrastructure proposal many see China’s Further, to be a Japanese-dominated Bank (AIIB) as a challenge to what is perceived ADB. the AIIB out of Ambassador to the ADB, has noted that China may be creating its capital contribution (and thus voting frustration, due to its inability increase power) in the existing institution. trajectory Current “resource the bank’s options to address pledged to actively explore Nakao recently challenge” and take advantage of opportunities to co-finance with bilateral private-sector sources. Governors in 2014, Nakao announced plans to combine the concessional ADF and equity base ADB’s LIBOR-based OCR. The merger of the funds aims to increase members. additional funds from without its having to request concessional financing for development capacity to provide enhance the bank’s projects.

65

66 67 The bank is headquartered in Manila, Philippines. The bank is headquartered 64 Asian Development Bank (ADB) b. Organization and regional Founded in 1966 by 31 countries to support economic growth loans, grants, integration in Asia, the ADB now has 67 members. It provides central banks, non- technical assistance and equity investments to sovereigns, ordinary organizations and private-sector clients. The ADB draws from profit (OCR) and eight special funds, including the Asian Development capital resources Fund (ADF). Governance of governors, composed of one The ADB grants all powers to the board may delegate any or all powers to the The board of each member. representative for the governors. except those powers exclusively reserved of directors, board handles day-to-day management in practice, and is of directors The board of governors (eight by regional composed of 12 members elected by the board two-year terms. members) for renewable members and four by non-regional but has no vote, except in the of directors chairs the board president The bank’s has the deciding vote. event of an equal division, in which case the president Length of leadership mandate Five years; re-electable. Income subscribed capital in the same OCR loans in 2012. Total $9.4 billion in approved year was $163.129 billion, with an operating income of $464.7 million. Number of staff 3,045. History of leadership Watanabe Takeshi were: has been Japanese. The past presidents Every president (1976-1981), Masau Yoshida Inoue (1972-1976), Taroichi (1966-1972), Shiro (1989-1993), Mitsuo Sato (1993-1999), Fujioka (1981-1989), Kimimasa Tarumizu (2005-2013). Chino (1999-2005) and Haruhiko Kuroda Tadao Nakao (2013-present). is Takehiko president The current

Evaluation of Organizational Structures that Enable Effective Leadership 19 ADB 80 Lim & Vreeland Lim & Vreeland 79 But as Sakai correctly But as Sakai correctly 81 Other factors tradition of selecting Bank’s Much like the World the ADB is commonly an American President, understood to operate under the informal is selected by Japan convention that the President 1995; Kilby 2006, 1993, 1995; Wan (Yasutomo has 2013). Every President 2011; Lim & Vreeland from been Japanese, and most have come directly the Finance Ministry of Japan. (2013) write that in addition to its large formal voting its Japan “exerts informal influence through power, de facto appointment of the ADB president.” disagreed of Strategy Kazu Sakai strongly Director with the notion that Japan ‘de facto’ appoints via interview that every He reminded President. a candidate, and member can put forward regional was that “no other candidate does not mean there was [still] an election and voting.” no election; there academics and observers maintain, Numerous informal influence and large that the strong however, monetary contribution of Japan allows it to pick uncontested. the President is no formal evidence that would notes, there confirm such an informal arrangement, aside from has never been a non-Japanese the fact that there by any member. candidate proposed Further, the President the President Further, 77

78 Published rules No evidence. Formally, full membership. (a) Each Governor can nominate a is candidate. (b) Each member country has one vote. The President no less than a elected by a simple majority of Governors representing majority of total voting power all members. cannot be member country (e.g., there must be a national of regional an American President). No evidence. searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches leadership selection process Indicator The Does the MO/IO publish criteria/ for leadership terms of reference online? of the membership What percentage is involved in leadership selection and in practice? re-election a time-bound, published, Is there for leadership exhaustive process selection that weighs competence against the published criteria? 1 I. 2 3

20 Effective Leadership in International Organizations 97 The Committee on Remuneration, established via Resolution No. 66 (and amended by Resolutions of the 155 and 175) undertakes an annual review salaries. It may of Directors’ and Board President of Governors for to the Board submit a proposal every year of Directors adjustments to the Board every other year. and the President

82 , a 86

89

90 Executive The Bank also 96 83 , guidelines for 93 an Independent 84 , a Compliance Review Panel (CRP) 85 and general code of conduct for all , and all staff involved in lending activities are involved in lending activities are , and all staff 94 91 , and a new Vice-President for Administration and , and a new Vice-President , access during investigations 87 At the ADB’s 2014 Annual General Meeting of the At the ADB’s 92 88 programme and receives annual feedback on performance and receives programme 95 meeting of the World Bank Development Committee in meeting of the World which are transparent and consistent with MO/IO’s overarching goals and which facilitates leadership overarching and consistent with MO/IO’s transparent which are th Washington D.C. Washington of Governors in Astana, Nakao outlined ten priority action areas Board review. to fulfil the goals of Strategy2020 in light its mid-term Yes. The ADB is largely guided by goals stated in its ‘Strategy2020’ Yes. performance, a ‘Results Framework’ the Bank’s measure To report. is also published. of Director by the Board approved Review,’ a ‘Development Effectiveness features Evaluation Department (IED) policy transparency Corporate Management. how the ADB can addressed President In October the current Yes. fulfil the goals of Strategy2020 in a written statement submitted to the 88 and Directors the President The 2011 Code of Conduct requires Yes. to disclose any such conflicts the ADB Ethics Committee. in also guidelines for the avoidance of conflicts interest are There independent evaluations to disclose such interests. required is an Ethics committee that has published rules on gifts There Yes. and entertainment allegations of misconduct employees. No evidence. tied to performance but it for most employees are Salary increases exact salary The President’s is unclear if this applies to the President. is not available but the highest salary category (IS10) ranged from to a 2014 proposal. $257,800 – $322,300 according of Governors. an exclusive right of the Board salaries remain No evidence. No evidence. is based on transparent processes and metrics processes is based on transparent performance management performance expectations re-election process re-election The leader has clear accountability Do the leaders set clear performance expectations for themselves, which and consistent? transparent are an expectation that the Is there goals of leader translates overarching organization into a manageable and clear strategy? Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? The leader has a defined Is the leadership subjected to annual performance appraisal? or benefits tied to Is remuneration the outcomes of performance management programme? coaching and Is the leader offered development opportunity to address weaknesses over time? Leadership performance management criteria Are by the full membership in considered process? the re-election 1 1 1 II. 2 3 4 III. 2 3 IV.

Evaluation of Organizational Structures that Enable Effective Leadership 21 This 104 100 One former director-general, One former director-general, 99 101 The President of the ADB is widely understood The President significant personal power within to exercise the organization. speaking under condition of anonymity in 2010, told (2013): “the ADB is like a state, Lim and Vreeland is like its emperor.” and the ADB President by contested, however, was strongly interpretation of Strategy Kazu Sakai in an interview ADB Director that the Sakai stressed conducted for this report. (elected by of Directors 12-member Board ADB’s all major decisions the Governors) must approve and that the above by the President, proposed of the quote is a “complete misrepresentation ADB.” The largest special initiative is the Asian Development Fund (ADF). The cumulative total of $33 billion. The Fund the ADF is approximately to a large extent by subset of full is controlled membership. But at the end of each replenishment undertaken once every four negotiation process, between ADB management years, the agreement called the and ADF donors is put into a report ‘Donors’ Report.’ This Report’ is then members for approval. submitted to the Board the ADF (e.g., Thus major decisions regarding are and individual ADF projects replenishments) by the full set of ADB members ultimately approved representatives. of Directors via their Board 103 102 to meet changing circumstances However, major changes to strategic priorities However, 98 through-out the organization through-out shift strategic priorities In response to the results of these surveys, ADB Management to the results In response 105 There has never been another candidate put forward in the event of an has never been another candidate put forward There election or re-election. is entrusted with the authority to conduct The President Yes. ‘business of the bank.’ by the approval (or continuations of existing strategic priorities) require of Directors. Board a strategic agenda and take steps can put forward The President Yes. the ADB to fulfil its goals, as exemplified by Strategy2020. Further, and Budget Framework that describes Programme publishes a Work how the ADB will implement its strategic priorities. $4 billion (28.6%) of ADB funding is Special Fund Approximately funded by a subset of full membership. Resources Engagement Surveys’ every two The ADB conducts ‘Staff Yes. years. dissatisfaction at both the institutional and staff take steps to address department level. attract, retain and develop talent attract, retain Are other qualified candidates Are in the re-election considered process? The leader has the authority and mechanisms to Does the leader have authority to shift strategic priorities in light of external changes? Does the MO/IO have processes that facilitate implementation of new strategic priorities? set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results 2 V. 1 2 3 VI. 1

22 Effective Leadership in International Organizations 107 A 110 109 internal/external evaluations engage with diverse range of stakeholders No Evidence. 106 108 MO/IO has structures that engage leadership thoroughly with Internal: The Compliance Review Panel (CRP), an internal watchdog of the ADB, investigates alleged that has caused, or is likely to cause, noncompliance by the bank in its operation policies and procedures countries, the investigate borrowing people. It does not, however, material harm to project-affected direct to accusations of noncompliance. Complaints can executing agency or private sector clients unless relevant in writing and sent to the Complaints be filed via the ‘Accountability Mechanism’ but must expressed two additional levels of internal evaluation in the organization. The first is are (CRO). There Receiving Officer The or projects. for individual country strategies, programmes self-evaluation, conducted by those responsible second is independent evaluation conducted by the Independent Evaluation Department (IED), a member of of the Multilateral Development Banks (ECG). The IED operates according the Evaluation Cooperation Group IED managers and external influence and the avoidance of conflicts interest. of insulation from to standards that they evaluating any project/programme/activity/entity evaluators exclude themselves, for example, from worked on. a subset Further, of capital replenishment. rounds External: Donors evaluate performance during the regular which regularly the Multilateral Organisation Performance Assessment Network (MOPAN), of donors created of institutions (such as the ADB) to which said donors contribute funds. conducts evaluation reviews top management noted via interview that some individual donor countries have begun member of the ADB’s assessments, citing the United Kingdom and Australia as most notable cases. “They to conduct regular the volume of their development assistance but want to contain [own] administrative want to increase to international organizations like us [ADB]. But in order budget. The solution is to channel their funds through do that they want to evaluate the performance of international organizations, and they want to put their money is subject to such assessments.” There regularly are doing a good job… We in organizations they think are of which the ADB become a member in 2013. Initiative (IATI), also the International Aid Transparency Is the leader assessed on mentoring staff? and coaching of subordinate MO/IO has structures that encourage leadership to stakeholder engagement, focusing on the participation a guide on strengthening In 2006 the ADB released 2. Cycle: 1. Country Programming; of a diverse range stakeholders in the six stages ADB Project 3. Operational Planning; 4. Implementation, Monitoring and Reporting; 5. Self-Evaluation; Processing; Project the ADB aims to consult a policy, strategy or country programme, and 6. Post-Evaluation. When reviewing interests; in a given activity; determine stakeholder group with stakeholders to identify who has interests and maximize experience and expertise; gain stakeholder consensus on projects; capitalize on stakeholder’s transparency. out and that the ADB is doing enough to reach of stakeholders agree survey, three-quarters In the most recent that number is only one-third. but of private sector respondents, build partnerships with the private sector, 2 VII. VIII.

Evaluation of Organizational Structures that Enable Effective Leadership 23 Past presidents include Jacques Attali (1991-1993), Past presidents History of leadership has served terms; only Jean Lemierre have typically served four-year EBRD presidents the full eight-year double term. (2000- (1993-1998), Horst Köhler (1998-2000), Jean Lemierre Jacques de Larosière (2008-2012). 2008) and Thomas Mirow Sir Suma Chakrabarti, was elected in 2012. president, The current trajectory Current or German, and had banking either French All leaders prior to Sir Suma were a change in emphasis, given his extensive Sir Suma represents backgrounds. a wide- experience in managing large public-sector organizations. He has introduced and delivery, including organizational efficiency to improve programme ranging reform emphasis in hiring executive management, and greater transparency a shift to greater on performance management of senior leadership. European Bank for Reconstruction and Development (EBRD) European c. Organization A multilateral development bank, the EBRD uses investment as a tool to help central Europe from of operations stretching build market economies in the region to central Asia, and the southern and eastern Mediterranean. Governance an executive of governors and directs to a board reports president The EBRD’s committee that oversees the important aspects of strategy, performance and donor nations, it represents of governors financial analysis. While the board The bank is organized of directors. delegates most of its authority to the board including banking, finance, risk and policy, among into seven operational groups others. Most other the president. of governors also appoints or reappoints The board which oversees the operations of of directors, devolved to the board powers are and the executive committee (made up of heads major the president internal operational groups). Length of leadership mandate can with no limit on the number of terms a president Four years and renewable, has a five-year term. hold. The vice-president Income made in 2011. €9.1 billion in investments were Number of staff 1,700 on permanent contracts, with 1,250 at the London Approximately A significant number of additional headquarters and 400 in country offices. on temporary contracts. employees are

24 Effective Leadership in International Organizations This was the most publicly transparent This was the most publicly transparent 113 115 Other factors considering writing terms of reference They are This most likely in future. role for the President’s member. would be drafted by senior EBRD staff to the Board The Principals would delegate this role serve national whom predominantly of Directors interests. or Sir Suma Chakrabarti is the first non-French France of the Bank. Traditionally German President on the candidate. However, and Germany agreed was a competitive in the most last election there broke agreement’ as the ‘gentlemen’s process down. was advertised to In the last election role manifestos several candidates wrote shareholders, to voters outlining their vision for the Bank, and four for Global of the five gave interviews to Centre Development, followed by hearings with the EBRD Board However it is not a codified election process. process. Sir Suma Chakrabati made his goals clear through his election Manifesto to shareholders. The performance objectives for the Executive published on the intranet and Management are goals (taken as the President’s reflect effectively then a sum). These performance objectives are of the organization. cascaded down to the rest The strategic planning cycle does not link to the election cycle. The Bank has a five year presidential Review”, which it must deliver “Capital, Resources, has limited an incoming President on. However, reset these goals and adapt to changing flexibility to circumstances. which is The EBRD has an annual disclosure, and scrutinized by the chief compliance officer, for follow-up and enforcement. is a procedure there 111 112 which are transparent and consistent with MO/IO’s overarching goals and which facilitates leadership overarching and consistent with MO/IO’s transparent which are 114 Published rules Employment role. for the President’s no terms of reference are There contract is published online including salary, terms of dismissal. There for the Vice Presidents. terms of reference are is laid out role and President’s of Directors of Governors, Board Board is no detailed ‘Basic Documents of EBRD’ in some detail, but there discussion of any other roles. of majority voting to of Governors has rounds Formally, the Board for 4-year terms eliminate candidates and determine the President terms). (and re-appointment non-exhaustive and without a clear formal selection remains President process. to the rigor has been introduced level greater At the Vice Presidential for VP level leaders is a clear formal process There leadership process. tested for VP CFO, CAO, Risk, and that was effectively Policy as well the General Counsel. For example, an exhaustive, of over 850 applicants was conducted passport-blind interview search traditionally held by an American) for VP of banking operations (a role in 2012. . No publicly available evidence. No evidence. mandated under the formal Code are of conflict interest Disclosures of Conduct. searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches performance expectations leadership selection process Indicator The Does the MO/IO publish criteria/ for leadership terms of reference online? of the membership What percentage is involved in leadership selection and in practice? re-election a time-bound, published, Is there for leadership exhaustive process selection that weighs competence against the published criteria? The leader has clear accountability Do the leaders set clear performance expectations for themselves, which and consistent? transparent are an expectation that the leader Is there goals of the translates overarching organization into a manageable and clear strategy? Is the leader obliged to disclose conflicts of interest? I. 1 2 3 II. 1 2 3

Evaluation of Organizational Structures that Enable Effective Leadership 25

117

120

119 EBRD practices are sometimes stricter than the EBRD practices are formal Code of Conduct as it can be politically to be non-executive sensitive for senior staff in the private or charity sector members of Boards they may be able to do so). (even if officially This is no formal appraisal of the President. There or of Directors for the Board would be difficult Principals’ to carry out as they do not have sufficient role. information on the President’s for an approval must have Board The President in salary. increase and other senior management have The President Many senior staff coaching available on request. have personal coaches. is not a formal performance appraisal of No as there the President. is no codified rule that other there However, in the re-election candidates must be considered It is likely that the next election will also be process. open and contested. Due to the mismatch between strategic planning for the difficult and the election cycle it is extremely strategic priorities. It to adapt the EBRD’s President to a major crisis such as the can occur in reaction Arab Spring. is no budget for special initiatives. There the budget, salary control the Board Furthermore and total number of fixed employees. This of staff to make for the President difficult makes it extremely as the EBRD is strategic changes with existing staff on short-term contracts. staff only able to hire 116 reforms to facilitate reforms to meet changing circumstances structural programme and receives annual feedback on performance and receives programme 118 shift strategic priorities EBRD has a defined formal Code of Conduct (which was updated in to reports directly who 2012) overseen by a Chief Compliance Officer misbehaviour risks and staff Responsible for reputational the President. Compliance Mechanism. and overseeing the Project not outlined online or Details about performance management are publicly. and benefits’ designed to encourage discusses ‘rewards Annual report superior performance, but it is not clear whether the policy includes leadership. EBRD has a learning and development team who work closely with that the Evaluation Department (EvD) team to design programmes delivery. They do not existing weaknesses in programme address focus on the President. is similar to the appointment process process The re-appointment a majority vote, but frequently of Governors require in that the Board decisive. informal negotiations prior to the formal vote are in a full range of candidates for re-appointment The EBRD considered the last election. For example, Sir Suma Chakrabarti was selected over in 2012, Thomas Mirow. the incumbent President has authority to shift strategic priorities. For example, The President has President of Governors/ Directors, in conjunction with Board expanded lending to North African clients as the need assist them in has emerged. transitioning to democracy and free-markets carries out The President Yes. implementation of new strategic priorities and evolve after the global recession. financial crisis and the continuing great that the has developed a new policy role For instance, the President In as well a new Corporate Leadership Group. approved Board to review has developed 12 internal taskforces addition, the President has A new policy operational group and structures. internal processes policy expertise to to better convey the EBRD’s also been created client countries. is based on transparent processes and metrics processes is based on transparent performance management re-election process re-election Is the leader obliged to adhere to a Is the leader obliged to adhere published code of ethics? The leader has a defined Is the leadership subjected to annual performance appraisal? or benefits tied to Is remuneration the outcomes of performance management programme? coaching and Is the leader offered development opportunity to address weaknesses over time? Leadership performance management criteria Are by the full membership in considered process? the re-election other qualified candidates Are in the re-election considered process? The leader has the authority and mechanisms to Does the leader have authority to shift strategic priorities in light of external changes? Does the MO/IO have processes that facilitate implementation of new strategic priorities? 4 III. 1 2 3 IV. 1 2 V. 1 2

26 Effective Leadership in International Organizations These surveys have been used. is not formally assessed on this (or The President anything else), however Sir Suma Chakrabati has dedicated time to mentoring senior staff. 122 124 internal/external evaluations through-out the organization through-out engage with diverse range of stakeholders

123 121 The EBRD features 17 Special Funds earmarked by specific project 17 Special Funds earmarked by specific project The EBRD features and funded by subsets of donors type and/or geographic area (totalling €827 million in 2011, equivalent to 9% of the €9.1 billion in total commitments). In addition to these funds, the EBRD runs a number of bilateral and multilateral technical assistance funds in the totalling €2.574 billion in Southern and Mediterranean (SEMED) region, 2011. surveys every 3 years to annually. The EBRD has shifted from Yes. No evidence. attract, retain and develop talent attract, retain What percentage of resources are set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results Is the leader assessed on mentoring staff? and coaching of subordinate MO/IO has structures that encourage leadership to executive managers spend two days with civil society where The EBRD has a Civil Society Programme the President to garner feedback on EBRD performance. It also conducts a business forum where groups interact with business leaders. In 2012 the EBRD significantly enhanced its civil of Directors and Board society initiatives. The EBRD Mining Operations Policy was implemented that year in consultation with more Phase 3 and academics. Further, than 1,500 organizations including mining companies, civil society groups of the Sustainable Energy Initiative (SEI) was launched, with consultative meetings in Georgia, Kazakhstan, its political methodology in 2012, holding workshops and Ukraine. The EBRD also reviewed Russia, Turkey the EBRD also planned to its 2013 prospectus, According Belgrade, Moscow and Cairo. London, Stanford, and a wide variety of other policies last year in consultation with civil society groups three on reviewing and Social the 2008 Environmental Complaint Mechanism Rules of Procedure, stakeholders: the 2009 Project Policy, and the 2011 Public Information Policy. MO/IO has structures that engage leadership thoroughly with regularly been updated since 1992 (EBRD Evaluation Policy, EBRD has a defined Evaluation Policy that to a Chief Evaluator which is part of 2013). EBRD has an Evaluation Department (EvD) which reports frameworks, performance and budgets, results complementary web of instruments – e.g. work programmes In addition, the Chief of Directors. to the Board directly etc. The evaluation team reports scorecards, as does the internal for audit team. The to the President, Vice-President reports directly Compliance Officer Risk also sits on the Executive Committee. in the 2006 Multilateral Development Bank (MDB) Common Performance Assessment EBRD also featured MDBs jointly publish information on how they conduct business and organize where report, (COMPAS) results. towards geared that their operations are themselves to ensure 3 VI. 1 2 VII. VIII.

Evaluation of Organizational Structures that Enable Effective Leadership 27

126 125 127

History of leadership Chile, 1960- (from served several terms: Felipe Herrera prior presidents The three Iglesias (Uruguay, 1971); Antonio Ortiz Mena (Mexico, 1971-1988) and Enrique V. 1988-2005). has also (Colombia; 2005-present), Luis Alberto Moreno president, The current than one term. served more nominated different In the 1970 elections, both Argentina and Venezuela the majority of votes. David M. Ortiz received candidates, but on 27 November, Nixon that the Richard to President reported of the treasury, Kennedy, US secretary election had been “contentious”. Latin American The Andean Development Corporation (CAF) funded more Bank combined. in 2012 than the IADB and World projects infrastructure and Michaelowa (2013), the attractiveness of CAF vis-à-vis to Humphrey According standards. times and low societal environmental the IADB is its fast processing lack of perhaps made possible by CAF’s Such advantages, the authors argue, are members. non-regional trajectory Current in October 2005, the bank has undergone a assumed the presidency Since Moreno agenda and has established a reform of its organizational structure, major reshaping mandate. in resources linked to the ninth general increase

Inter-American Development Bank (IDB) Inter-American d. Organization Founded in 1959 as a partnership between Latin American countries and the United States, the IDB supports client governments, private entities and non- sectors with capital for development operations. The Inter-American profit (IADB) is composed of the IDB, Inter-American Development Bank Group Investment Corporation (IIC) and the Multilateral Fund (MIF), latter in the United States is headquartered by the IDB. The group being administered DC). (Washington Governance of governors, which delegates oversight of bank The IADB is headed by a board 48 countries). from (representatives of executive directors operations to a board of The management team runs day-to-day operations. Elected by the board of executive directors, chairs the meetings of board governors, the president but has no vote. Length of leadership mandate Five years; can be re-elected. Income in 2012. The subscribed capital to the IDB, $11.4 billion in lending was approved will amount to $170.9 billion. after the ninth general capital increase, Number of staff About 2,000.

28 Effective Leadership in International Organizations Strand 130 Numerous authors have warned, Numerous 129 Further, as Birdsall (2014) notes herself, as Birdsall Further, 131 132 Other factors governance Some observers celebrate the IADB’s the arguing that it better preserves structure, members than other multilateral of regional interests (2014), for example, institutions. Nancy Birdsall members hold notes that in the IADB regional non- whereas a majority of the voting power, members collectively hold a majority in borrowing Bank. the World that voting weight is an insufficient however, of power and influence within an measure organization (Schotter 1981; Hosli 1996). (2003), employing the Johnston voting power index, calculates the actual distribution of voting power in the IADB based on individual countries’ voting and the power of power within coalition groups to this calculation, itself. According coalition group the United States holds 80% of voting power within the IADB. the controls the US, via its de facto veto power, Executive Vice-President selection of the IADB’s (EVP). This is significant given that the EVP chairs any project the Loan Committee that must approve of Governors for final the Board it reaches before approval. 128

133 manner. confidential together with the 134 is published online. 135 k set of regulations Published rules No. The Chairman submits the terms of contract for employment of Governors in a to the Board for the President Full membership. (a) Each Governor can nominate a candidate. (b) Each member country has equal amount of votes (135) plus one vote capital (OC) stock of the Bank. The majority of ordinary for each share of total voting power member countries elects the President, members. including an absolute majority of governors of regional power among member countries of the IDB is as follows: Latin Voting American and the Caribbean have 50.015%, United States 30.006%, members 15.979%. Canada 4.001% and the non-regional The comprehensive Yes. agreement establishing the Ban searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches leadership selection process Is there a time-bound, published, Is there for leadership exhaustive process election that weighs competence against the published criteria? Indicator The Does the MO/IO publish criteria/ for leadership terms of reference online? of the membership What percentage is involved in leadership election and in practice? re-election I. 1 2 3

Evaluation of Organizational Structures that Enable Effective Leadership 29

0 4 1 138

137 The Board of The Board 139 in 2006 that lists a number programme and receives annual feedback on performance and receives programme 136 which are transparent and consistent with MO/IO’s overarching goals and which facilitates accountability overarching and consistent with MO/IO’s transparent which are Building Opportunity for the Majority The IDB has a series of strategies to achieve its institutional mandates. is a specific, formal expectation that the President It is unclear if there a five-year plan did release Luis Moreno President do so. However, titled of specific strategies and goals for the 2007-2012 period. has a fixed salary of No. As of December 2012, the President $440,798 (does not include Executive Allowance of $78,889). No evidence. No evidence. No evidence. Yes. All IDB employees must disclose conflict of interests to prevent to prevent All IDB employees must disclose conflict of interests Yes. escalating into an allegation of Misconduct. the situation from laid out in to strict ethical standards All IDB employees adhere Yes. Conduct. the 2012 Code of Ethics and Professional is subject to its own Code. Executive Directors No evidence. performance management is based on transparent processes and metrics processes is based on transparent performance expectations re-election re-election The leader has clear Do the leaders set clear performance expectations for themselves, which and consistent? transparent are an expectation that the Is there goals of leader translates overarching organization into a manageable and clear strategy? Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? The leader has a defined Is the leader subjected to annual performance appraisal? or benefits tied to Is remuneration the outcomes of performance management programme? coaching and Is the leader offered development opportunity to address weaknesses over time? Leadership performance management Are by the full criteria considered membership in the re-appointment process? other qualified candidates Are in the re-election considered process? II. 1 2 1 2 3 IV. 1 2 3 4 III.

30 Effective Leadership in International Organizations

143

. s Contributions There are four are There 141 145 a broad consultation a broad

144 , Office of Evaluation and (Stephen D. Krasner writes that internal/external evaluations Fund for Special Operations (FSO) 142 to meet changing circumstances through-out the organization through-out engage with diverse range of stakeholders shift strategic priorities The President makes proposals on the general policy of Bank for makes proposals The President consideration by the Board. No evidence. the Ordinary $10.8 billion was from Of the 2012 total approvals, the Capital (OC), $320 million from Fund). Trust 1965 was called Social Progress (before made in the form of non-negotiable, non-interest to the FSO are bearing demand obligations in lieu of the immediate payment all or contributions quotas. any part of a member’s allocates the resources. The Board for the FSO activities voting, United States have a blocking veto.) on the Human Capital Strategy (2011) Working Yes. was undertaken by Management to identify the key challenges process survey sent out to 500 employee an electronic through by staff perceived No evidence. attract, retain and develop talent attract, retain

The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results The leader has the authority and mechanisms to Does the leader have authority to shift strategic priorities in light of external changes? Does the MO/IO have processes that facilitate implementation of new strategic priorities? set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? Is the leader assessed on mentoring staff? and coaching of subordinate MO/IO has structures that encourage management to the Bank. financing from Most importantly, civil society organizations (CSOs) may also be eligible to receive Citizen Participation in Bank Activities (2004), to the Strategy for Promoting Also, according of Bank activity in which citizen participation can be systematically incorporated: (i) input into areas the shaping of country development policies, plans and agendas; (ii) sector strategy annual are and implementation, (iv) evaluation of Bank activities. There preparation formulation, (iii) project the year. functioning through CSO meetings and Consulting Groups MO/IO has structures that engage executive management thoroughly with between management and the responsibility Evaluation at the IDB is a shared Oversight (OVE). evaluations and monitoring portfolio performance. OVE is independent of Management focuses on project Its activities include ensuring that strategies, of Executive Directors. management and answers to the Board internal objectives and mandates. OVE oversees the Bank’s comply with the IDB’s policies and programmes evaluations. monitoring mechanisms and conducts ex-post project and conflicts external from pressure OVE has organizational and behavioural independence, is free of the Multilateral to the criteria established by Evaluation Cooperation Group according of interest Development Banks (ECG), of which the IDB is a founding member. V. 1 2 3 VI. 1 2 VII. VIII.

Evaluation of Organizational Structures that Enable Effective Leadership 31 nationality – a longstanding convention by which the United States and Europe – a longstanding convention by which the United States and Europe Number of staff 2,700. Approximately History of leadership Bank has dealt with the at the IMF and World Leadership recruitment principle MD is selected by organizations. The IMF’s divide management of the respective contract. A governor or an the MD’s which also approves its executive board, to their nationality, may nominate candidates without regard executive director Belgium, 1946-1951); Camille Gutt (from although all MDs have been European: Ivar Rooth (Sweden, 1951-1956); Per Jacobsson 1956-1963); Pierre-Paul Schweitzer (France, 1963-1973); H. Johannes Witteveen (Netherlands, 1973-1978); (France, 1978-1987); Michel Camdessus 1987- Jacques de Larosière 2000); Horst Köhler (Germany, 2000-2004); Rodrigo de Rato (Spain, 2004-2007) and Dominique Strauss-Kahn (France, 2007-2011). is also its first (France, 2011-present), Christine Lagarde leader, current The IMF’s female MD. In 2000, the of controversy. The MD position has been accompanied by its share thereby United States challenged the German nomination of Caio Koch-Weser, triggering conflict: Japan and developing countries signalled that the convention and delays in appointment was to be called into question (lack of transparency in 2007, Rodrigo de Rato’s to the convention). Later, have been closely related shocked the his term due to personal reasons halfway through resignation in May 2011 Dominque Strauss-Kahn, resigned organization. And his successor, after being arrested. trajectory Current must the IMF governance structure that, to be effective, It is widely recognized world economy. the current of all its members and reflect the interests represent which included wide-ranging quota realignments This was seen in the 2006 reforms, the voting power of dynamic emerging-market countries, consistent with (increasing in basic importance in the world economy), a significant increase relative their growing the voting power of small determined, to protect votes and a change in how they are and low-income countries.

147 146 International Monetary Fund (IMF) e. Organization as part of the international economic War Established after the Second World (United States), the IMF is committed to Woods at Bretton agreed infrastructure international monetary cooperation and high levels of employment promoting income, as well facilitating international trade. Governance highest decision-making body. It consists of governors is the IMF’s The board of one governor and one alternate governor for each of the 188 member member countries, countries. The governors, appointed by their respective usually ministers of finance or the heads their countries’ central bank. are the admittance of new quota increases, the right to approve retains The board members, compulsory withdrawal of and amendments to the Articles is advised by two ministerial committees: and By-Laws. The board of Agreement the International Monetary and Financial Committee (IMFC) the Development Committee. all 188 representing consists of 24 executive directors The executive board the five largest business. Currently, member countries, and conducts the IMF’s and the other countries quota contributors appoint their own executive director, based on constituencies. Under the quota and elect an executive director all 24 executive adopted in 2010 but not yet force, governance reforms, would be elected by member countries, making the IMF only directors international institution with an all-elected board. and (MD), who is the head of staff The IMF is led by the managing director The MD is assisted by a first deputy managing chairman of the executive board. The management team oversees deputy managing directors. and three director and maintains high-level contact with member countries, private-sector the staff organizations, the media, civil society think tanks, academia and other institutions. Length of leadership mandate five-year term. A renewable quotas Total 2013. $360 billion, as of March

32 Effective Leadership in International Organizations 153 158 Other factors Before 2007 there was no statement of the 2007 there Before qualities, expertise and experience that candidates started improvements should have. The process setting out a timetable and with the Executive Board for the Executive Directors inviting nominations from post of MD, and interviewing those who applied. is a nomination period, followed by There more are shortlisting of candidates (in case there by a majority of votes cast the than three) Once the shortlist is published Executive Board. interview each candidate. 24 Executive Directors The candidates then make statements to the published), following (which are Executive Board then makes the final by a Q&A session. The Board selection traditionally based on consensus (although The a majority of votes cast is formally required). selected candidate is notified and announced publicly, including the hiring contract. and sometimes made unofficially Commitments are the selection is made. For example, Jacques before meetings committed to chair the Board de Larosière personally, and he kept the promise. and the Independent 151 , “the total votes of each 148 There are also complete TORs are There 149 155 quota formula the ombudsperson, The procedures and timetable for 2011 selection The procedures 150 156 152 In December 2010, the Board of Governors approved of Governors approved In December 2010, the Board 154 which are transparent and consistent with MO/IO’s overarching goals and which facilitates leadership overarching and consistent with MO/IO’s transparent which are 157 Published rules published on were of Appointment for Christine Lagarde Terms Yes. release. July 5, 2011 in form of a press job standardized and By-Laws offer Articles of Agreement The Fund’s description for Executive Directors. for the ethics adviser, Evaluation Office. a series of press published through were of the Managing Director releases. The entire membership. Any IMF member, through its Governor or through membership. Any IMF member, The entire can nominate a candidate for the post of Managing Executive Director, to the According Director. member shall be equal to the sum of its basic votes and quota- based votes”. than 6% of quota that is to shift more a quota and governance reform and voting the quota shares to emerging market and protect shares members. power of the poorest for leadership selection is part of the founding The process Yes. of the International Monetary Fund and is Articles of Agreement publically available. divided of management the organization are The responsibilities Yes. and four Deputy Managing Directors between the Managing Director (DMDs). Each DMD has a purview of countries and subject matters for and typically oversees the internal review which he/she is responsible meetings. In Board paper and chairs related for each Board process the First addition to the countries and subjects under his/her purview, not in for all issues that are is responsible Deputy Managing Director in the purview of other DMDs and assists Managing Director also sets oversight of the institution. The Board the comprehensive objectives for assessing the performance of Managing Director (and DMDs), and such assessment takes place annually. searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches performance expectations leadership selection process Does the MO/IO publish criteria/ for leadership terms of reference online? Indicators The of the membership What percentage is involved in leadership selection and in practice? re-election a time-bound, published, Is there for leadership exhaustive process selection that weighs competence against the published criteria? The leader has clear accountability Do the leaders set clear performance expectations for themselves, which and consistent? transparent are I. 1 2 3 II. 1

Evaluation of Organizational Structures that Enable Effective Leadership 33 161 . , which is derived from , which is derived from Namely, there is no “whistle-blower” Namely, there 163 165 Managing Director’s Global Policy Agenda Managing Director’s The regular structured discussions between structured The regular and management focus on department directors key departmental objectives, including on budget priorities. Departmental and human resource the annual statement of objectives flow from Key Goals Management’s the Management holds semi-annual discussions with made with current to discuss progress each Director performance strategic priorities and to review against budget and people management indicators. also discussed for New goals and targets are helps improve the period ahead. This process departmental alignment to institutional priorities and enhances collaboration between departments by more specifying joint objectives, while promoting management of budgets and people. effective governance to the IEO, Fund’s According framework is not well designed to identify actual or ethical problems and potential conflicts of interest of the MD. misconduct, and, for persons who report protection is no mechanism for complaints there in particular, the and concerns about Executive Directors, that guarantees the MD, and other senior officers confidentiality of the source. As the IEO notes, it is not clear who would be in a position to apply this Code the MD, given that to the for its application report those responsible MD. 160 under the Ethics of the Executive work to ensure that work to ensure Global Policy established the principle 162 Code of Conduct

164 d deals with any possible conflicts of Accountability Frame Code of Conduct Statement on the Work Program Statement on the Work (twice a year) is then continuously monitored by the (twice a year) is then continuously monitored IMFC discusses and provides its views, which are then its views, which are IMFC discusses and provides 159 . Yes. Although it isn’t in the terms of appointment. Managing Director in the terms of appointment. Managing Director Although it isn’t Yes. ministerial policy their goals and vision to the institution’s presents advisory committee, the IMFC, twice a year in Agenda into an operationally pointed set translated by the Managing Director as the of proposals which is discussed and endorsed by the Executive Board. Board, Program The Work its in light of developments to ensure and revised MD and the Board, and the management implementation. The Managing Director effective team oversee the institution’s senior managers (Department Heads) meet the strategic goals set by the Managing Director. Paragraph 27 of the Yes. member who considers that he or she might be in that “any staff should disclose conflict of interest a position of actual or apparent the matter” to his or her supervisor Compliance Officer. Submission of annual financial certification form is also part MD’s of in the assignment Code of Conduct is also considered contract. The cannot be assigned tasks, including that a mission chief/reviewed staff to a country of which he/she is national. In addition, the Committee of the Executive Boar among Executive Directors. interest MD is subject to the staff The current Yes. Ethics Committee, is a Board terms of the letter appointment. There Ethics Officer. which is separate from Is there an expectation that the Is there goals of leader translates overarching organization into a manageable and clear strategy? Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? 2 3 4

34 Effective Leadership in International Organizations 168 169 According to IEO, the Board has thus far played to IEO, the Board According in selecting MDs and renewing forma role only a pro their appointments, with the actual decision being made by a subset of member countries’ authorities an opaque process. through for is no formal process to IEO, there According for candidates. The convention that the searching governments of their countries origin propose in some candidates has in the past resulted competent possible candidates not being put including domestic for a variety of reasons forward political factors or lack of enthusiasm by the national authorities. Annual Performance 167 166 programme and receives annual feedback on performance and receives programme of the Managing Director (and DMDs), during which MD of the Managing Director Yes. The Executive Board conducts a direct conducts a direct The Executive Board Yes. Review in feedback on her own assessment and that of the Board provides the same context. in 2009, is based on a defined introduced This annual exercise, and the Managing Director both the Board framework. Each year, against which an specify performance objectives for each other, In conducting this assessment is conducted in the following year. of five each year appoints a working group the Board exercise, to oversee the (with geographical representation) Executive Directors comprises several iterations and involves all The process process. Executive Directors. terms of appointment identify a fixed salary Christine Lagarde’s in consumer $467,940 per annum, which is adjusted by the increase area. Washington price index in the greater IMF organizes managerial courses; the management team has Yes. access to them. membership, in consultation with the entire The Executive Board, Yes. In doing so, the Managing Director. determines whether to re-appoint performance. it takes an account of MD’s the of the Managing Director, In considering any re-appointment Yes. the membership, considers all options. representing Executive Board, is based on transparent processes and metrics processes is based on transparent performance management re-election process re-election The leader has a defined Is the leadership subjected to annual performance appraisal? or benefits tied to Is remuneration the outcomes of performance management programme? coaching and Is the leader offered development opportunity to address weaknesses over time? Leadership performance management criteria Are by the full membership in considered process? the re-election other qualified candidates Are in the re-election considered process? 1 1 III. 2 3 IV. 2

Evaluation of Organizational Structures that Enable Effective Leadership 35 172 171 The EIO states that there are also informal practices are The EIO states that there that facilitate negotiations. E.g.: discussions and and into a decision making shift out of the Board not bound of policy makers who are smaller group their by voting arrangements or formal procedures; calls and conference dialogue takes place through rarely minutes are official private meetings where kept. The financing made available to the IMF under such intended to be available arrangements are credit any member country if needed. including is an intense follow-up with staff, There and action plans town hall meetings with all staff, developed, on a wide variety of specific issues are closely. implemented, and monitored The management team is assessed on all issues. In is an self-assessment management of staff the MD’s important element. , Poverty Reduction Global Policy Agenda to meet changing circumstances through-out the organization through-out (PRGF). 170 shift strategic priorities Yes. The Managing Director presents her presents The Managing Director Yes. outlining the strategic priorities of institution, twice per year to the ministerial policy advisory committee, IMFC, after close warrant, Should circumstances consultation with the Executive Board. can act quickly to consult with the Executive the Managing Director the strategy in interim period. on refining Board consults with the Executive routinely The Managing Director Yes. often on all strategic matters. In addition, the Managing Director Board meets with senior policy makers during her travel to member countries and discusses the strategic priorities of institution, including emerging issues. Supplementary financing arrangements exist between the IMF and a the New Arrangements subset of members. Primary among these are is some between the IMF and 38 member countries. There to Borrow budget on technical assistance: 40% ($107 million, 46% discretionary of external financing over 1990-2012 period is Japanese) of IMF’s than 70% of field delivery. Some funds budget development and more by all membership, for example the controlled are and Growth Facility surveys on a wide range of periodic IMF-wide staff are There Yes. conducted in 2013. The management issues, with the most recent (but does not publicly with all the staff directly its results team shares publish them). attract, retain and develop talent attract, retain The leader has the authority and mechanisms to Does the leader have authority to shift strategic priorities in light of external changes? Does the MO/IO have processes that facilitate implementation of new strategic priorities? set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results Is the leader assessed on mentoring staff? and coaching of subordinate 1 1 V. 2 3 VI. 2

36 Effective Leadership in International Organizations 173 More recently, the IMF has increased its the IMF has increased recently, More Since 2010, engagement with labour groups. collaboration between the IMF and International Labour Organization (ILO) has noticeably increased, floors, focus on social protection with greater on jobs national social dialogue, and research The IMF engages with the ITUC on a and growth. basis, and the two organizations hold annual regular of national labour discussions with representatives engages with global unions. The IMF also regularly briefings on country press media and holds regular and policy matters. independently examines the of its work. There is a comprehensive is a comprehensive of its work. There internal/external evaluations 176 engage with diverse range of stakeholders internal self-assessments was established in 2001 to conduct objective evaluations of Fund Office of Internal Audit and Inspection

175 it engages with executive management, the board and the staff when they “respond to when they “respond and the staff it engages with executive management, the board 174 Independent Evaluation Office (IEO) MO/IO has structures that encourage leadership to (mostly, though discussions), civil society mentions IMF cooperation with labour groups The annual report that could count as limited meetings, seminars and fellowship programme conferences, organizations (through as well legislators. The IMF Managing institutionalization), academia (academic fellowship programme), also hold a civil society organizations town hall meeting during the Bank President and the World Director Annual Meetings. MO/IO has structures that engage the leader thoroughly with The the Management of IMF it is fully independent from of Reference, policies and activities. Under its Terms a year on specific It publishes one report of Executive Directors. the Board length from and operates at arm’s at the IMF). As indicated in terms research international reserves, of IMF as trusted adviser, IMF policy (role for IEO, of reference parts of the evaluation”. relevant operational angle, the a more From OIA of the organization. Each year, and governance processes of the risk management, control, effectiveness which include financial audits, information technology and operational conducts audits and reviews, for new consulting services, e.g., help identify controls audits. OIA may also provide and effectiveness that the IMF operates in line with best international practices. The overall purpose is to ensure processes. and extensive The IMF also conducts regular for all IMF documents, policy analysis, and lending operations, which begins with process internal review documents for the final clearance of all official Management is responsible review. staff an interdepartmental published. most documents are Thereafter, issuance to, and consideration by, the Executive Board. before (for Examples of internal self-assessment include ex post assessments/evaluations of financial programmes programme). assessment of the Greece example, a recent VII. VIII.

Evaluation of Organizational Structures that Enable Effective Leadership 37 179 increased the core the core increased 178 180 177 and strengthened internalby establishing an audit and oversight and strengthened controls 181 Length of leadership mandate once. Five years; renewable Income reached $1.3 billion in 2013, budget expansion, the organization’s Reflecting IOM’s the fifth-consecutive year of growth. Number of staff than 480 field locations. 8,500 globally, with more Approximately funding; committee. History of leadership When selecting the DG, member states have traditionally elected candidate largest donor country, with one exception: Bastiaan Haveman, nominated by IOM’s leadership comprises a deputy director-general Netherlands (1961-1969). IOM’s (DDG), who is also an elected official. the Hugh Gibson (from organizations were: Past leaders of IOM and its predecessor Tittman Daly United States, 1952-1954); Harold (United States, 1955-1958); Marcus (United States, 1958-1961); Bastiaan Haveman (Netherlands, 1961-1969); John Thomas (United States, 1969-1979); James Carlin 1979-1988) and Brunson McKinley (United States, 1998-2008). leader is WilliamThe current Swing (United States, 2008-present). trajectory Current review that consolidated IOM’s Swing embarked on a structural After taking office, at headquarters; coherence greater and ensured field structures

International Organization for Migration (IOM) f. Organization operational IOM works with partners to support states in meeting the growing challenges of migration governance; advance understanding of migration issues; migration; and uphold the encourage social and economic development through well-being and human rights of migrants. working relationship IOM has a long-standing, extensive and closely coordinated with the UN, at policy and operational levels. At level, IOM chiefs of mission participate in humanitarian country teams and virtually all UN its participation in the teams. IOM contributes to system-wide operations through lead and co- Standing Committee (IASC), and is an active partner, Inter-Agency the world. lead in several clusters many countries around At the global level, United Nations High Commissioner for Refugees and IOM and camp management co-cluster lead agencies. the camp coordination are in the second At the policy level, IOM was chair of Global Migration Group for the second UN High-Level preparations semester of 2013, leading the group’s 2011 to 2013, the IOM director- Dialogue on Migration and Development. From of sexual exploitation to support prevention general (DG) led system-wide efforts cooperation is and abuse (PSEA) as the PSEA champion. Inter-institutional through headquarters; the permanent observer in New York, maintained by IOM’s and special liaison missions in the field. ongoing liaison with the UN secretariat; in IOM as Observers. represented UN agencies are Twenty-six Governance of 157 member states, determines, The IOM Council, comprising representatives and and activities, reviews policies, programmes examines and reviews and accounts. As the highest budget, expenditures the organization’s approves the activities, and directs and approves the reports, authority, the council reviews at its annual session and in special of its subsidiary bodies. Meeting regularly sessions, the council may admit non-member states upon their application. It also admit international organizations and civil society to participate for council sessions are in its sessions as non-voting observers. Preparations including the standing committee other governing body structures, made through and finance (SCPF), informal consultations working groups. on programmes

38 Effective Leadership in International Organizations Other factors The Constitution outlines 182 which are transparent and consistent with the IO’s overarching goals and which facilitates leadership accountability overarching and consistent with the IO’s transparent which are Published rules The IOM Constitution, which is available online, outlines the DG’s Yes. formulates functions. Accountable to the Council, Director-General to the administrative and executive functions of related proposals with the Constitution and Council policies IOM, in accordance decisions. Special Council Sessions invite all voting Member States to participate and the Deputy Director- The Director-General in the election process. majority of all participating elected by a two-thirds General (DDG) are voting Member States of the Council. the criteria for Member States’ loss of voting rights. A State in the payment of its financial contributions to which is in arrears equals Organization loses its voting right if the amount of arrears two or exceeds the amount of contributions due in preceding years. of DG and DDG selection is detailed in the The process Yes. Constitution, which is available online. Additional elements for the election of the leadership, adopted by Council on 30 November that the nomination of candidates be 2007, stipulate the requirement by Member States to the Council Chairperson no later than presented two months prior to the elections. acceptance speech to the Council upon The Director-General’s Yes. priorities for the mandate ahead. The election outlines the overarching biannually -- to the Council and SCPF reports Director-General -- on the performance of organization under his leadership. The relates to each of specifies how the work of Organization report the points of IOM Strategy established by Council. that establish – mandated by the Council, IOM has processes Yes Strategy. The Regional Strategies action plans of the Organization’s operational tools that illustrate how the global IOM Strategy are level. Two (12-Point Strategy) is implemented at the regional (MCC) and committees for management coordination coordinating communication and policy formulation (PFCC) facilitate coherence, cooperation between Headquarters and the Field enhance the the quality of decision-making and compliance throughout joins for a biennial retreat Organization. The Senior Management Team and operationalize multi-annual organizational goals with to review targets. In alternating years, the DG convenes a Global Chiefs of Field and HQ communicate consult on Mission meeting, where key institutional priorities and challenges. searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches performance expectations leadership selection process leadership selection process Indicator The Does the IO publish criteria/terms for the leader online? of reference of the membership What percentage is involved in leadership selection and of the leader? re-election a time-bound, published, Is there for leadership exhaustive process selection that weighs competencies against the published criteria? The leader has clear Does the leader set clear performance expectations for transparent themselves, which are and consistent? an expectation that the leader Is there goals of the translates overarching organization into a manageable and clear strategy? I. 1 2 3 II. 1 2

Evaluation of Organizational Structures that Enable Effective Leadership 39

183

184 to meet changing circumstances

programme and receives annual feedback on performance and receives programme shift strategic priorities Yes, the DG, the DDG and all IOM staff are required to declare any to declare required are the DG, DDG and all IOM staff Yes, The Constitution stipulates that in the performance conflicts of interest. instructions from of their duties, these shall neither seek nor receive an external authority. All employment by IOM is subject to signature provides The Ethics and Conduct Office of a declaration to this effect. for involvement in any activity outside IOM that may advice on request involve a conflict of interest. All employment in IOM is subject to a signed commitment adhere members have an of Conduct. All IOM staff to the IOM Standard any alleged violations to the Ethics and Conduct obligation to report referrals concerning allegations of misconduct who manages Office, and unethical behaviour. to Member States and gives a full account regularly The DG reports and financial performances in programmatic of the organization’s meetings of the Governing Bodies. is determined by the Council, based on UN remuneration The DG’s duration of his mandate. pay scale and fixed for the entire which provides and development programme IOM has a staff Yes. coaching and development opportunities to the DG, DDG other members. staff The performance is subject to the criteria established by each of voting countries individually. Re-election, like the initial election, is an election process. determined by Member States through considered. all nominated candidates are Following the process, Yes. puts into action, varying the emphasis The Director-General Yes. the IOM Strategy established by to circumstances, as appropriate the DG to the IOM Constitution requests Member States. Moreover, action by the Council’, proposals for appropriate ‘formulate proposals that have included new strategic imperatives. the DG implements new strategic priorities in consultation within Yes, partners. Member States as well relevant IOM, the Organization’s performance management leader is based on transparent processes and metrics processes leader is based on transparent

of the Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? The leader has a defined Is the leader subjected to annual performance appraisal? or benefits tied to remuneration Are the outcomes of performance management programme? coaching and Is the leader offered development opportunity to address weaknesses over time? Re-election performance management criteria Are by the full membership in considered process? the re-election other qualified candidates Are in the re-election considered process? The leader has the authority and mechanisms to Does the leader have authority to shift strategic priorities in light of external changes? that Does the IO have processes facilitate implementation of new strategic priorities? 1 1 1 3 4 III. 2 3 IV. 2 V. 2

40 Effective Leadership in International Organizations For instance 186 187 Some respondents have noted that this funding Some respondents activities. influences IOM’s structure noted that as IOM is a one UK DFID report, organisation’ the UK ‘only seek[s] to ‘projectised basis’. influence [it] on a project 185 188 internal/external evaluations through-out the organization through-out engage with diverse range of stakeholders IOM also manages special funds whose criteria and procedures are are IOM also manages special funds whose criteria and procedures established by the full membership. These funds allow swift responses (Migration to emergencies while waiting for funding be cleared Emergency Funding Mechanism) or to assist vulnerable migrants who would not be eligible under other funding mechanisms (Global In addition, the IOM Assistance Fund for Victims of Trafficking). Development Fund seeds innovative pilot projects. 3% of IOM’s annual budget comes from assessed contributions and annual budget comes from 3% of IOM’s The operational part of the budget structure. is used to cover the core by Member States and other donors for specific (97%) is provided mandate and strategy – both of which that fall under IOM’s projects established though a unanimous decision of the Member States. are IOM has carried out a number of surveys, most notably the Yes. of its Satisfaction Survey”. It is also carrying out a review “Global Staff members. which includes surveys to staff organizational restructuring evaluation survey, IOM also uses organization-wide an online staff In professionalism”. priorities will continue to be “staff as one of DG’s addition, IOM has a small team focusing on talent management in the consultations with the Staff organization. The leadership holds regular Association Committee. He has been involved with The DG sets priorities for coaching of staff. vision and the training of new Chiefs Mission by articulating IOM’s open dialogues with staff. holds regular attract, retain and develop talent attract, retain

189 What percentage of resources are set are of resources What percentage aside for special initiatives decided by a subset of the full and controlled membership? The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results Is the leader assessed on mentoring staff? and coaching of subordinate The IO has structures that encourage leadership to the theme of “partnerships”. IOM is a permanent observer to around priorities revolves One of DG Swing’s Yes. the UN and a standing invitee to IASC meetings. The Organization is member of Global Migration Group, mechanism on migration, and works closely with the Global Forum for coordination the principal inter-agency and the Forum’s Secretariat support to the Group’s Migration and Development (GFMD), including through consultations with partner NGOs and hosts an annual global civil society Support Unit. IOM holds regular cooperation substantive and logistical support to regional consultation in HQ. The Organization provides years, the range of state and non-state stakeholders. In recent mechanisms on migration involving a broad to the private sector. emphasis on outreach Organization has placed greater The IO has structures that engage the leadership thoroughly with of the Inspector General contributes to oversight Office both external and internal. IOM’s Yes, its functions of internal audit, evaluation, rapid assessment and investigation. An Organization, through to the membership, carries out performance audits and examines annual reporting external auditor, In addition to that, an relation to accepted international auditing standard. financial statements of IOM, in and accountability the transparency Audit and Oversight Advisory Committee (AOAC), established to increase Finally, report annually to the SCPF. of IOM, is composed five members selected by Member States that listed on the website and available upon of donors are external evaluations conducted on the request request. 1 3 VI. 2 VII. VIII.

Evaluation of Organizational Structures that Enable Effective Leadership 41 seeking to 195

197

198 The UNDP was ranked in the top 10 of 72 196 Current trajectory Current In April 2011, Clark launched an “agenda for organizational change”, strategic planning and UNDP’s by improving enhance organizational effectiveness the annual business plan in 2012, organizational performance. Clark introduced to strengthen organizational goals “cascaded” to unit work plans in order where alignment of actions and resources. Index. organizations in the 2012 Aid Transparency term, and in 2014 she in April 2013 for a second four-year Clark was re-elected at staff These included reducing reforms. launched a series of human resource distribution ratio so that the staff levels by 10%; reversing headquarters and regional and 40% at the and country offices, 60% of employees would be based at regional into efforts headquarters; and integrating policy support-programme New York costs. staffing to reduce a single bureau 190

The 193 191 Since 2001, the board has held Since 2001, the board 192

194 United Nations Development Programme (UNDP) United Nations Development Programme e. Organization mission is to the UNDP’s largest and lead development actor, As the UN’s assist countries to “achieve sustainable human development”. Its four core democratic the millennium development goals and poverty reduction; are: areas and recovery. and energy; crisis prevention governance; environment Governance basis of 36 states, which serve on a rotating The UNDP has an executive board under the authority of Economic and Social Council (ECOSOC). policy guidance, monitoring performance and for providing is responsible board deciding on administrative and financial plans. sessions and an annual session each year. two regular Length of leadership mandate twice. Four years; can be renewed Income all contributions was $4.64 billion in 2012. income from The UNDP’s Number of staff 8,000. History of leadership The UNDP administrator was traditionally an American, nominated by the US (SG) to the General by the UN secretary-general government and recommended (United Kingdom) Assembly. This changed in 1999, when Mark Malloch Brown and the Turkey, The subsequent administrator was from became administrator. New Zealand. one is from current the United States, 1966- (from Paul Hoffman Past leaders of the UNDP were: 1972); Rudolph Peterson (United States, 1972-1976); Frank Morse States, 1976-1986); William Draper (United States, 1986-1993; James Gus (United Kingdom, Speth (United States, 1993-1999); George Malloch Brown 2005-2009). 1999-2005) and Kemal Dervis (Turkey, leader is Helen Clark (New Zealand, 2009-present). The current

42 Effective Leadership in International Organizations

The 206 202 This 203 Kofi Annan introduced a new, more more a new, Kofi Annan introduced 201 Furthermore the selection process is the selection process Furthermore 204 Other factors proposed until 1999 the US President However, whom the SG then the UNDP Administrator, to the General Assembly for recommended confirmation. merit-based and open selection process. largest donor states have tended to the most decision. influence on the SG’s introduced: new selection process Annan’s selection committees formation of specialist search and interviews who conducted research a candidate to the SG. recommended candidate could be vetoed by the SG and had However the to gain General Assembly approval. not formalized selection committees were SG’s no formal documents outlining this are and there process. still politicized: candidates must be recommended by a government and governments can veto the decision. by all widely read The Annual Report is reportedly priorities. to know the Administrator’s staff 205 UNDP has 207 Officially all member Officially 200 208 UNDP’s founding General Assembly resolutions do not founding General Assembly resolutions UNDP’s 199 which are transparent and consistent with IO’s overarching goals and which facilitates leadership accountability overarching and consistent with IO’s transparent which are Published rules online for the no publically accessible terms of reference are There leadership. functions. outline the Administrator’s General appointed by the UN Secretary The Administrator is officially and then confirmed by (SG), in collaboration with the Executive Board, the General Assembly for a term of four years. documented. officially is no formalized process There Annual Report which outlines the UNDP publishes the Administrator’s are However there performance to the Executive Board. organization’s for the Administrator. no separate, individual performance standards UNDP has set specific, measurable strategic priorities in Strategic 2014 – 2017 Strategic Plan. Plans such as the current also explained how their strategic goals will be implemented and in detail. measured states of the General Assembly have a say. searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches performance expectations leadership selection process leadership selection process Indicators The Does the IO publish criteria/terms for the leader online? of reference of the membership What percentage is involved in leadership election and in practice? re-election a time-bound, published, Is there for election of exhaustive process the leader that weighs competence against the published criteria? The leader has clear Does the leader set clear performance expectations for transparent themselves, which are and consistent? an expectation that the leader Is there goals of the translates overarching organization into a manageable and clear strategy? I. 1 2 3 II 1 2

Evaluation of Organizational Structures that Enable Effective Leadership 43 217 214 We found no evidence (formal or informal) of an We or individual performance management programme appraisal for the Administrator. All Administrators who have sought a second by the UNSG, with term have been reappointed Interviewees claimed that approval. the Board’s informal discussions between the SG, are there such as the key donors, other political groups over the Administrator’s groups G7 and regional performance but no formalized appraisal process. decisions The Administrator may influence Board and does not always have gain formal approval a majority vote to begin work in new areas. through 212 Senior 213

210 Current Administrator Current 218 209 to meet changing circumstances

216

211 programme and receives annual feedback on performance and receives programme The Administrator can pursue new initiatives but must get shift strategic priorities 215 Helen Clark has disclosed her financial assets publically. leadership can attend Executive Education Programmes. approval. the Executive Board’s All senior officers in the UN system must file a financial disclosure in the UN system must file a financial disclosure All senior officers statement annually with the UN ethics office. obliged to follow the UN are including the Administrator, All UN staff, Code of Conduct. Administrator is accountable to the UNDP Executive Board. UNDP’s on remuneration rules and regulations The UN Human Resources depending on their rank. The fixed pay scale for all staff sets a clear, General pay grade. Administrator is paid at the Under Secretary for leadership development and UNDP has an extensive programme participated in 2012. management skills which over 600 staff is no documentation of a formal performance appraisal the There candidate. evidence of this. No official The Administrator operates under the policy guidance of Executive Board. UNDP has a senior management committee which discusses new they go to the priorities and will evaluate all documents before actions. Executive Committee with requested is based on transparent processes and metrics processes is based on transparent performance management Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? The leader has a defined Is the leader subjected to an annual performance appraisal? or benefits tied to Is remuneration the outcomes of performance management programme? coaching Is the leader offered and development opportunities to weaknesses over time? address process Leadership re-election performance management criteria Are by the full membership in considered process? the re-election other qualified candidates Are in the re-appointment considered process? The leader has the authority and mechanisms to Does the leader have authority to shift strategic priorities in light of external changes? that Does the IO have processes facilitate implementation of new strategic priorities? 3 4 III. 1 2 3 IV. 1 2 V. 1 2

44 Effective Leadership in International Organizations UNDP has also diversified 221 UNDP is reported to ‘actively’ pursue ‘non-core to ‘actively’ pursue ‘non-core UNDP is reported donors with programmes financing by presenting that appeal to them’. recent years with of financing in its sources (such other multilateral sources financing from: Commission and the Global as the European Fund) and private financing (which Environment of the budget). It has constitutes almost a third emerging countries who pay gained financing from by UNDP. for services provided directly 222 223 internal/external evaluations 220 through-out the organization through-out engage with diverse range of stakeholders UNDP’s core resources are disbursed by the General are resources core UNDP’s The head of the UNDP Evaluation Office reports directly to reports directly The head of the UNDP Evaluation Office 219 224 In 2012, earmarked contributions from bilateral ($1.33 billion) and In 2012, earmarked contributions from multilateral partners ($1.53 billion) accounted for 22% of the overall income. 20% years: in 2012 they were Assembly and have stagnated in recent of its overall financing. carried out Surveys which are UNDP conducts annual Global Staff by an external, independent organization. In addition, UNDP has in its 2014 – 2017 Strategic Plan which prioritized supporting staff states that “UNDP will lift its people management capabilities with to that support staff and initiation programmes speedier recruitment diversity, manage talent and quickly, ensure more become effective deliver better succession planning for key posts.” not formally expected to do this. They are attract, retain and develop talent attract, retain What percentage of resources are set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results Is executive management assessed on mentoring and coaching of staff? subordinate The IO has structures that encourage leadership to and facilitate it has to coordinate System. In this role UNDP is manager of the UN Resident Coordinator and common ‘business operations’ of other UN agencies at country level. They have proposed programming evaluating their partnerships with partners’ satisfaction surveys UNDP. The IO has structures that engage leadership thoroughly with that independence and ensure its evaluation policy in 2011 to establish the Evaluation Office’s UNDP revised all evaluations have a management response. response to a management prepares and their office The Administrator is briefed before the Executive Board. to evaluations and discusses follow-up actions with the evaluations. The Administrator has the right of reply Board. 3 VI. 1 2 VII. VIII.

Evaluation of Organizational Structures that Enable Effective Leadership 45

235 HC Rudd Lubbers 232 UNHCR has also 239 236 United Nations SG Javier Perez de United Nations SG Javier Perez 233 Guterres has sought a greater role in protecting IDPs in protecting role has sought a greater Guterres 237 234

238 restructured and reduced staff costs from 41% of total expenditure in 2006 to 26% 41% of total expenditure costs from staff and reduced restructured at the beginning of 2013. concerned some donors are and people displaced by natural disasters. However, of that UNHCR is expanding beyond its mandate and not prioritizing protection refugees. the end of 2012, UNHCR established an organization-wide risk Towards management framework. In this phase, the work on enterprise risk (ERM) concentrated on developing a draft policy framework and implementation tools, which have been tested at headquarters and in four field operations to the deputy HC. Global reports directly 2013. A chief risk officer throughout 2014. implementation of ERM will continue throughout UNHCR has had several high-profile leadership scandals. Jean-Pierre Hocké leadership scandals. Jean-Pierre UNHCR has had several high-profile as HC after he and his wife flew first class while donors (1986-1989) had to resign for the agency. budget restrictions demanding greater were to resign when he was forced reputation (2001-2005) also damaged UNHCR’s in 2005 due to allegations of sexual abuse. and who had Dayal, the chief of his own executive office Cuéllar nominated Virendra worked at UNHCR. The United States and other major donors expressed previously Dayal’s consultation, and the SG withdrew was insufficient concern, arguing there nomination. trajectory Current on internal reforms. leadership, UNHCR has made progress Under Guterres’ results-based management, a new IT system and has introduced The HC office In 2012, the HC appointed an independent audit and oversight an ethics office. these functions. and strengthen committee to review 230 ExCom is responsible for approving for approving ExCom is responsible 227 However, its income is typically far below the However,

229

228 225 However, UNHCR’s principal executive and advisory body UNHCR’s However, 226

231 United Nations High Commissioner for Refugees (UNHCR) h. Organization years, the agency In recent of refugees. mandate is the protection core UNHCR’s in humanitarian crises and situations involving internally has also taken a role displaced persons (IDPs). Governance UNHCR is a subsidiary body of the UN General Assembly, established under The high commissioner (HC) acts under the authority Article 22 of the UN charter. annually to the General Assembly. The UNHCR statute authorizes of and reports the General Assembly and Economic Social Council (ECOSCO) to give policy guidance. office of the UNHCR (ExCom), comprised is the Executive Committee of Programme of 87 member states as July 2013. guidance on the agency’s and providing budget and programme, UNHCR’s management and priorities. Length of leadership mandate terms. A No time limit has been stated; in the past, HCs have served up to three term is commonly five years (e.g. Sadruddin Aga Khan was HC for 12 years). Income annual budget is needs-based, and in 2012 was $4.3 billion (including UNHCR’s supplementary programmes). only about $2.3 billion in voluntary funding. budget: in 2012, it received Number of staff in 118 than 150 nationalities working at 259 offices Over 6,800, with more countries. History of leadership the Gerrit Jan van Heuven Goedhart (from The past leaders of UNHCR were: Netherlands, 1951-1956); Auguste Lindt (Switzerland, 1956-1960); Félix Schnyder (Switzerland, 1960-1965); Sadruddin Aga Khan (Iran, 1965-1977); Poul Hartling Hocké (Switzerland, 1986-1989); Thorvald (Denmark, 1978-1985); Jean-Pierre Stoltenberg (Norway, 1990-1990); Sadako Ogata (Japan, 1990-2000) and Ruud Lubbers (Netherlands, 2001-2005) (Portugal, 2005-present). HC is António Guterres The current

46 Effective Leadership in International Organizations donors still had 249,

246

There has only been one contested There 240 250 247 256 248 Other factors a significant donor The HC has often come from HC is an exception to this). state (the current Meanwhile, the post of Deputy HC has almost always been a US National. influence on Powerful donor states have a strong vetoed potential the decision and have frequently candidates. election for the HC, which was in 1950 first HC. more election was reportedly The Guterres as it ‘involved some prior than previous transparent public scrutiny of the candidates’ a large input. may decide not to sign the code of conduct, in Staff obliged to explain their decision which case they are in writing.

241 The 244 252

The HC’s functions The HC’s 245 242 Guterres has voluntarily Guterres 253

255 254 which are transparent and consistent with the IO’s overarching goals and which facilitates accountability overarching and consistent with the IO’s transparent which are 243 Published rules Statute, as outlined in UNHCR’s functions of the HC (HC) are The core successive GA resolutions. and extended through revised effectively the terms of appointment which General proposes The UN Secretary by the General Assembly. then by approved are manual (chapter II) which is available also described in UNHCR’s are on the Intranet and accessible to permanent missions UNHCR’s partners. Statute, the HC is elected by UN General to UNHCR’s According General. of the UN Secretary Assembly on the recommendation of the General General consults the five geographical groups Secretary Assembly and members of the Security Council. of consultations is largely a process No. The selection process between the UN SG and key donor states. The HC sets out his/her objectives in a number of UNHCR reports, including the annual Global Reports and Strategic Priorities. 251 organization-wide goals, not specific to the HC. These are In addition to the Global Strategic Priorities, UNHCR has established a Global Management Accountability Framework (GMAF). The GMAF maps accountabilities, responsibilities ‘comprehensively reportedly them to the the organization and relates and authorities across management policies and guidance’. corresponding in the UN system must file a financial disclosure All senior officers statement annually with the UN ethics office. disclosed this publically. asked to sign including the senior management are All UNHCR staff the UNHCR Code of Conduct. searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches performance expectations leadership selection process leadership selection process Indicators The Does the IO publish criteria/terms for the leader online? of reference of the membership What percentage is involved in election and re-election of the leader in practice? a time-bound, published, Is there for selection of exhaustive process the leader that weighs competence against the published criteria? The leader has clear Does the leader set clear performance expectations for transparent themselves, which are and consistent? an expectation that the Is there goals of leader translates overarching organization into a manageable and clear strategy? Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? I. 1 2 3 II. 1 2 3 4

Evaluation of Organizational Structures that Enable Effective Leadership 47

265 259 268 The HC sets UNHCR strategic 267 The office was created with a high degree of with a high degree was created The office autonomy and although the UNSG signs contract appointing the HC, UNSG does not in performance management. have a role they can ask for this additional training if However, needed. goes to a full vote as The General Assembly rarely by consensus. the HC is normally reappointed is only if there Other nominees will be put forward not a consensus. The HC can accept, influence and generate policy in the General Assembly, ECOSOC directives and ExCom. priorities in consultation with senior management, field operations, persons of concern, partners and member states. These priorities have evolved, for instance in the Strategic Review, as reflected UNHCR has developed an ‘age, gender and attention and focused increased diversity’ approach on sexual and gender based violence in operations and on LGBTI persons of concern. There is There 264 261 263 to meet changing circumstances UNHCR has established a Global The UN Human Resources rules The UN Human Resources 262 260 programme and receives annual feedback on performance and receives programme

258 266 shift strategic priorities 257 include the HC, Deputy or Assistant HCs. and regulations on remuneration govern the HC’s salary. govern the HC’s on remuneration and regulations (GLC) in Budapest to consolidate its learningLearning activities Centre It has a position dedicated to developing and and programmes. for senior management but this does delivering training programmes not There is no formal performance management appraisal for the HC. There annually to the Executive Committee and the HC reports However, annual Committee of the General Assembly, and in UNHCR’s the Third reports. The Deputy HC and the Assistant HCs have performance appraisals. entitlements like any other The HC has a fixed salary and standard travel a standard When on mission, he receives member. UN staff allowance like all other UN staff. or coaching for the training programme is no formal or standard There informal on the job training in UN HC. The Chef du Cabinet provides to new HCs. rules and protocols content with the work of HC, SG will If member states are by the General Assembly. nominate him/her for re-election no formal appraisal process. is no by the GA if s/he stands. There the HC is re-elected Traditionally mandate. stated time limit; the HC can stand for a third The UNHCR Statute states that the HC shall follow ‘policy directives’ may the General Assembly or ECOSOC, and that office from engage in ‘such additional activities’ as the General Assembly may determine. performance management is based on transparent processes and metrics processes is based on transparent The leader has a defined Is the leader subjected to annual performance appraisal? or benefits tied to Is remuneration the outcomes of performance management programme? coaching and Is the leader offered development opportunity to address weaknesses over time? Leadership re-election performance management criteria Are by the full membership in considered process? the re-election other qualified candidates Are in the re-election considered process? The leader has the authority and mechanisms to Does the leader have authority to shift strategic priorities in light of external changes? 1 1 1 III. 2 3 IV. 2 V.

48 Effective Leadership in International Organizations 273 According to Turk and Eyster (2010), to Turk According 272 The HC has tasked the Deputy with following- that come out of the staff up on recommendations survey. the survey have guided Human from responses in changes to and resulted reform Resources procedures. postings and promotions UNHCR’s 274

ExCom must approve UNHCR’s budget, and UNHCR’s ExCom must approve 269 internal/external evaluations In 2012, 98% of funding was voluntary and only through-out the organization through-out 271 270 engage with diverse range of stakeholders is part of UNHCR’s Executive Direction and Management Executive Direction is part of UNHCR’s 2% came from UN Regular Budget (assessed contributions) to cover 2% came from administrative costs. issued during the year. even supplementary appeals which are UNHCR has a number of mechanisms, including: its global needs assessment (which identifies its needs-based annual budget, based upon consultation with persons of concern and partners), the Global Dialogues on Strategic Priorities, EXCOM conclusions, the annual HC’s Challenges. Protection UNHCR is almost completely voluntarily funded and has a very small budget. UN regular Surveys regularly. UNHCR conducts Global Staff regular in 2006 and have become a first administered These were biannual exercise. The HC is not assessed formally on the mentoring or coaching of subordinates. means s/he informally mentors his/her team of the role However, who meet weekly as heads and directors senior managers (20 bureau of the Deputy HC and Assistant HCs). well as the ‘troika’ attract, retain and develop talent attract, retain Policy Development and Evaluation Section Does the IO have processes that Does the IO have processes facilitate implementation of new strategic priorities? set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results Is the leader assessed on mentoring staff? and coaching of subordinate The IO has structures that encourage leadership to with the Executive Committee. S/he has also established informal dialogues The HC meets regularly hosting countries. and refugee than $20million, Regional Groups donors who give more high-level bilateral meetings with key In addition, the HC holds: an annual meeting with NGOs, regular Challenges. UNHCR includes persons of concern and humanitarian agencies, and a dialogue on Protection partners in their planning and priority setting. The IO has structures that engage leadership thoroughly with The a number of other oversight functions which engage senior are to the HC. There directly Division and reports management with evaluations and findings of other oversight mechanism. 1 2 3 VI. 2 VII. VIII.

Evaluation of Organizational Structures that Enable Effective Leadership 49

292 Up 285 Kim’s changes have, Kim’s 287 284 , and had competed directly with , and had competed directly 289 Hiring the management consulting firm

288 290 Furthermore, numerous observers see the New numerous Furthermore, 291 Jim Yong Kim, an American, won the nomination. Jim Yong 286 Current trajectory Current competition come at a time of increasing organizational reforms Bank’s The World and other multilateral development institutions. A study by Humphrey from Michaelowa (2013), for example, found that, under certain macroeconomic to work with the in Latin America often prefer individual borrowers circumstances, social and times and less bureaucratic IADB and CAF due to their faster processing economic lending requirements. Development Bank, composed of Brazil, the Russia Federation, India, China and Bank and the IMF. South Africa (BRICS), as a potential competitor to the World Number of staff than 168 countries. more Over 9,000 employees from History of leadership selects the WBG president. An unwritten rule exists that the US president of the WBG was not openly until 2011, the choice of an American as president two however, of a competing candidate. In that year, challenged by the proposal non-US candidates – Jose Antonio Ocampo (Colombia) and Ngozi Okonjo-Iweala put forward. (Nigeria) – were of the bank: Eugene Meyer (1946-1946), John past presidents The following were (1963- (1949-1963), George Woods J. McCloy (1947-1949), Eugene R. Black, Sr. Clausen (1981-1986), Barber 1968), Robert McNamara (1968-1981), Alden W. (1995- (1991-1995), James Wolfensohn Preston Conable (1986-1991), Lewis T. (2005-2007) and Robert Zoellick (2007-2012). 2005), Paul Wolfowitz a number of institutional changes in in 2012, Kim proposed Appointed president of fear”, a “culture 10,000 employees revealed 2013 after a survey of approximately for collaboration. “fear of risk” and a “terrible” environment organization, for been met with criticism. The decision to alter the bank’s however, example, has been deemed unnecessary. given that the was also controversial, McKinsey & Company for the restructuring since the bank’s structures (and all previous firm had designed the existing structure McNamara) under President 1972 reorganization Bank in advising governments. the World

In 2012, 276 282 The 2013 total 281 Multilateral Investment Guarantee

277 283 International Development Association (IDA), 275 The 25 resident executive directors (EDs) are responsible responsible (EDs) are executive directors The 25 resident 280 and International Centre for Settlement of Investment Disputes and International Centre 278 The WBG is headquartered in Washington DC and has more than 124 DC and has more in Washington The WBG is headquartered 279 World Bank Group (WBG) Bank Group World i. Organization The WBG consists of five institutions: International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), Agency (MIGA), (ICSID). country offices. Governance Member those of the IMF. resemble institutional features Many of the bank’s of of governors and board the board countries (188) govern the WBG through executive directors. the general operations under delegated powers from for the conduct of bank’s of governors. board (France, appointed by those member states with the largest shares Five EDs are 25 EDs Germany, Japan, United Kingdom and States). The remaining members. elected every 2 years by constituencies made up of the remaining are single-member are Saudi Arabia, China and the Russian Federation, however, their votes alone rather than doing so in chairs, meaning that they exercise Jim Yong constituencies of multiple member states. The EDs select the president. of EDs (elected in and is chairman of the board 12th president Kim is the WBG’s 2012). Length of leadership mandate twice. Five years; can be renewed Income $31.55 billion in financial assistance approximately of EDs approved The board for 2014. in fiscal year 2013, with $40.84 billion predicted comprised $15.2 billion in IBRD lending and $16.3 IDA support, with an $1.9 billion for fiscal year 2014. administrative budget of approximately the plan to decrease announced a three-year Kim, the new president, Jim Yong budget by 8%, or $400 million. bank’s

50 Effective Leadership in International Organizations

301 294

299

Robert McNamara and 295 298

303 Other factors Paul Bank President of World resignation The forced in 2007 for violating contractual clauses Wolfowitz to ethical and governing principles indicates relating for leadership selection that the terms of reference enforceable. taken seriously and are are the candidate put In practice, members approve forth by the United States. strategic points, but there Leaders focus on broad is no set of commitments. thought to be most clear on are George Woods their performance objectives. The debate is also about defining expectations times) and what leadership at different (different meet them. don’t does to understand why results compliance with the In practice, the Bank’s on the Wolfowitz’s principle was proven disclosure lost Bank Board case in 2007. The World Wolfowitz after a special confidence in the President investigative committee found he had violated his ethical and governing rules contract by breaking package for his partner in arranging a promotion his term before resigned Shaha Ali Raza. Wolfowitz had ended.

293 304 300

296 302

297 which are transparent and consistent with MO/IO’s overarching goals and which facilitates leadership overarching and consistent with MO/IO’s transparent which are WBG Strategy for 2030 approved in April 2013). WBG Strategy for 2030 approved Published rules made publicly available, recently of appointments were Terms Yes. contract is easier to find than Dr Kim’s. although Bob Zoellick’s either All member states vote during elections and re-elections alone (as in the case of Saudi Arabia, Russia and China) or via their constituency representative. organizations operates according Bank Group Each of the World Yes. which include established by its Articles of Agreement, to procedures terms of services for the President. during for that. Some set personal standards is no procedure There meetings (see at the Board inaugural speeches or pronouncements the minutes). Important to note that subsection and strategic reports. Only through of stakeholders (see a very diverse group expectations come from All the mid-level employees have to disclose financial investments, Yes. A separate Code of Conduct for Board including the President. sets the same standard. Officials is an There member. Code of ethics equally applies to every staff Yes. of Ethics and Business Conduct, an ethics helpline, a Code Office in 2003), as well a Code of Conduct for (created Conduct for Staff refined to include, for example, recently It has been Officials. Board sexual harassment (due to accession of women at the WBG). searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches performance expectations leadership selection process Indicator The Does the MO/IO publish criteria/ for leadership terms of reference online? of the membership What percentage is involved in leadership selection and in practice? re-election a time-bound, published, Is there for leadership exhaustive process selection that weighs competence against the published criteria? The leader has clear accountability Do the leaders set clear performance expectations for themselves, which and consistent? transparent are an expectation that the Is there goals of leader translates overarching organization into a manageable and clear strategy? Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? 1 1 I. 2 3 II. 2 3 4

Evaluation of Organizational Structures that Enable Effective Leadership 51 309

306

312 308

310 There are informal processes that inform the informal processes are There management. Dr Kim has a personal coach named Marshall Goldsmith. organizations – IMF and Woods The two Bretton is based Bank – show that re-appointment World on two criteria: (1) whether the incumbent wishes to stay; and (2) the dominant politics. In practice, competing non-American candidates until the 2011 election have not been considered put forth for in which two non-US candidates were election. the Articles of The only constraints are Agreement. The governors 11 3 Internal Evaluation to meet changing circumstances 307 report published in April 2012 included aspects of report programme and receives annual feedback on performance and receives programme 305 shift strategic priorities (IEG) “Evaluation of the World Bank’s Organizational Bank’s (IEG) “Evaluation of the World Yes, but not to the same extent as the regular staff. The evaluation staff. but not to the same extent as regular Yes, one and the same if are of the organization and President for its performance. is held responsible President Group Effectiveness” disclosed No, variation is very limited. Salaries for top management are in annual reports. Only on an ad-hoc basis. No evidence. Yes. shifts of strategy thorough can recommend the President Yes, for the Development Committee. delivering reports the proposals. approve Among mechanisms that partly facilitate implementation Unclear. of the Development Committee; agenda of new strategies: reports (Internal Completion and summaries of meetings; Appraisal reports Completion Reports (PCR) etc.); Internal Reports (ICR); Project of to the Board (the unit reports (IEG) reports Evaluation Group Governors, not management of the Bank); International Development Association (IDA) reports. leadership. performance management is based on transparent processes and metrics processes is based on transparent re-election re-election The leader has a defined Is the leadership subjected to annual performance appraisal? or benefits tied to Is remuneration the outcomes of performance management programme? coaching Is the leader offered and development opportunities to weaknesses over time? address Leadership performance management criteria Are by the full membership in considered process? the re-election other qualified candidates Are in the re-election considered process? The leader has the authority and mechanisms to Does the leader have authority to shift strategic priorities in light of external changes? Does the MO/IO have processes that facilitate implementation of new strategic priorities? III. 1 2 3 IV. 1 2 V. 1 2

52 Effective Leadership in International Organizations 317 314 316 Trust funds influence behaviours and priorities; Trust donors want this. It also distracts other resources for resources, (not only financial, but also human example). Also consider Reimbursable Advisory Services – when countries ask for extra services (management, for example, RAMP programme Bank undertakes for a fee the World where management of assets). surveys have been playing a surprisingly large Staff since Kim came. role It is “not a priority question”. Ideally, trust funds would be closely linked 313 through-out the organization through-out 315 There is a rapid growth in “trust funds”, non-discretionary budget in “trust funds”, non-discretionary is a rapid growth There that is being earmarked. and oversight. However, strategy, processes Bank’s to the World administrative budget, the since trust funds add 25% to the Bank’s weak. incentives to align are US and UK ($4,5bn, In addition, the biggest contributors in 2012 are by these risk of capture of total), which increases than one third more two countries. surveys conducted every 18 months staff (1) broad are: There Yes. exercise satisfaction with managers, (2) “360 degrees” staff to reveal and (3) a mechanism of peer one solicits inputs of subordinates where Jim Yong for correction. in place to make recommendations review a conducted a survey of its 10,000 employees. It revealed Kim recently for pervasive “fear of risk” and a “terrible” environment of fear,” “culture collaboration. No evidence. attract, retain and develop talent attract, retain What percentage of resources are set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results Is executive management assessed on mentoring and coaching of staff? subordinate 3 VI. 1 2

Evaluation of Organizational Structures that Enable Effective Leadership 53 21 3 319 The new strategy proposes that the Bank will focus The new strategy proposes on customized development solutions and align in all its activities with the two goals: work more partnership with others, including the private sector; its collaboration across and significantly increase agencies. It is good that IEG and the Bank carry out such surveys, but the Bank as a global player has to weigh country priorities with global and match. naturally they don’t in coordinating with clients in the in coordinating internal/external evaluations adequate engage with diverse range of stakeholders 318 20 3 MO/IO has structures that encourage leadership to the Within promotes its Social Development Department, the Participation and Civic Engagement Group for equitable participation of people and their organizations to influence institutions, policies processes Bank units, client governments and civil society assists World and sustainable development. The group Bank, in parallel with the Annual organizations. A Civil Society Policy Forum, organized jointly with the World Bank that covers a wide range of topics, including many suggested and Spring Meetings of the IMF World as part of project now common practice (if not required) by CSOs themselves. CSO consultations are (publishing early concept bids, and part of the WDR process notification of procurement appraisal processes, notes and initial drafts for public comments). in place: also structures are There Global Partnership for Social Accountability, a multi-donor trust fund to support CSOs that work in social accountability and governing bodies (non-voting seat) for WB trust funds Seats in committees and WB advisory boards (often donor-specific) Participation at WB Annual meeting consultations Involvements on projects, Development Grant Facility (finance and Partnerships) External Industry Initiative (EII) when WB acts as a trustee and administers money relations – donor meetings and country country offices Through on the ground – relations projects Through in 2012 rated the Bank Stakeholders surveyed by MOPAN responsiveness to changes in the project flexibility, and for the clarity of its procedures, design of projects, rigid and that are procedures implementation context. In their written comments, they noted that the Bank’s often delay implementation. processes bureaucratic MO/IO has structures that engage leadership thoroughly with ability to achieve World Bank Group’s (IEG) strategic goal is to influence the Independent Evaluation Group’s of Executive to the Boards directly development outcomes globally and with its partner countries. It reports The IEG the Committee on Development Effectiveness. work through which oversee IEG’s Directors, conducted a client survey in 2012 to determine whether the Bank was meeting clients’ needs and how they audiences: based on identical surveys carried out among three its impact. The survey findings are perceive and external stakeholders staff, Bank Group members and advisers, World Board Bank Group World (academia, private companies, nongovernmental organizations, governments, international organizations, the Development Impact Evaluation Initiative (DIME), donor organizations, and media). The Bank also features the use of impact evaluation (IE) in design and implementation bank projects. which seeks to increase thus entailing an additional internal evaluation of based on IE standards, DIME evaluates programmes performance. VII. VIII.

54 Effective Leadership in International Organizations Margaret Chan, the current DG, was appointed on 9 November 2006. Chan, the current Margaret any of the leaders. scandals regarding have been no outward There trajectory Current leadership, WHO has undertaken major financial, managerial and Under Chan’s timeline, intermediate check-in laying out its projected reform, governance-related has been both internal and external-facing,points and guidelines. This reform the activities with external stakeholders, including countries and latter covering WHO’s non-state entities. World Health Organization (WHO) World j. Organization Nations the United within health for authority coordinating and the directing WHO, leadership on global health matters, shaping for providing system, is responsible Headquartered agenda and setting norms standards. the health research (Brazzaville, the Republic of offices in Geneva, Switzerland, it has six regional DC, USA; New Delhi, India; Copenhagen, Denmark; Cairo, Congo; Washington Egypt; and Manila, Philippines) 150 country offices. Governance Health The 194 member countries govern WHO, meeting annually at the World (DG), supervises Assembly (WHA). The assembly appoints the director-general the proposed reviews and approves financial policies, and the organization’s (34 members), budget. The WHA is advised by the executive board programme are elected for a three-year technically qualified in the health field and who are term. Length of leadership mandate Five years. Income budget for 2014-2015 is $3.98 billion. The proposed Number of staff and countries. offices over headquarters, regional 8,000, spread History of leadership Canada, 1948-1953); M.G. B. Chisholm (from were: Past director-generals Candau (Brazil, 1953-1973); H. Mahler (Denmark, 1973-1988); Nakajima (Japan, 1988-1998); G.H. Brundtland (Norway, 1998-2003); Lee Jong-wook (Sweden, and Anders Nordström 2003-2006 [died in office]) (Republic of Korea, Lee]). 2006-2007 [acting DG, replacing

Evaluation of Organizational Structures that Enable Effective Leadership 55 323 Other factors is a large, ongoing discussion on the election There and it has been high-level of the Director-General, meeting agenda item in the 132nd Executive Board has been a Director-General in 2013. The current of bringing clarity to the process proponent strong of selection, and has succeeding in making key transparency. greater changes to ensure The unique aspect of WHO is that all the Regional also elected by the member (RDs) are Directors as opposed region, states of the respective other United Nations to nominated through organizations is skewed The membership of the Executive Board regions because the weighting given to different is not based on population, but rather the There number of member states in that region. is also considerable variability in the consultative has been some There by region. procedures frustration by Latin America, Africa and South Asia these representing due to a lack of Director-General but it was because most countries not regions, supporting their bids. is also an exhaustive document which lays There ethical practices out a code of conduct to promote the nomination/ throughout and transparency election process. 322 which are transparent and consistent with MO/IO’s overarching goals and which facilitates accountability overarching and consistent with MO/IO’s transparent which are Published rules online or in any public is no evidence of a “terms reference” There Health Organization has a detailed, the World However, record. of nominating and electing the Director-General, process thorough on the website, and part of public records. the details of which are includes the steps necessary for member states to This process candidate, details of the qualifications needed nominate an appropriate to be a candidate, specific deadlines and interview guidelines. Health Assembly (composed of all 194 countries) elects The World of the Executive Board on the recommendation the Director-General, (composed of 34 members). the above-mentioned documents list out exact procedures, Yes, including a time-line and other details for leadership selection. It supporting evidence lays out instructions for candidates to provide to match each of the published criteria for post Director- also set guidelines to submit a curriculum vitae and are General. There other institutionalized processes. from expectations personal of list clear a forth put General Director The publicly at the start of her term which she shared her tenure No available information searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches performance expectations leadership selection process Indicator The Does the MO/IO publish criteria/ for leadership terms of reference online? of the membership What percentage is involved in leadership election and in practice? re-election a time-bound, published, Is there for leadership exhaustive process election that weighs competence against the published criteria? The leader has clear Do the leaders set clear performance expectations for themselves, which and consistent? transparent are an expectation that the Is there goals of leader translates overarching organization into a manageable and clear strategy? 1 1 I. 2 3 II. 2

56 Effective Leadership in International Organizations There is a very robust performance programme performance programme is a very robust There the organization at every level. throughout has highlighted big changes being review MOPAN however, the process; undertaken by HR to improve is no formal system of appraisal the there conducted her She has previously Director-General. personal performance appraisal publicly but as it is un-biased. a self-evaluation, it is not inherently WHO operates at the same pay scale as rest of the United Nations system, particularly in line In practice, WHO partially follows with the UNDP. tied to outcomes of the a model of remuneration some are performance management and there for high performance within-grade pay increases selected the Global Leadership The Director-General focus is much more Committee herself and there on leadership skills and management (e-learning, There learning and mentorship programmes). group for senior management is a two year programme including coaching, training and management skills but this is not the case for Director-General. Every staff, P5 and above (including the Director- Every staff, annually. conflicts of interest General) has to declare is conducted by the legal team This process internally, and is very strict having been updated confidential These declarations are recently. but the organization is looking into in nature, based on the United publishing them in the future, Nations model. 326 325 however, there is nothing specifically detailed there however, 324 programme and receives annual feedback on performance and receives programme for senior leadership. is no mention of a formal performance appraisal on the There published a Director-General the current public portal. However, self-assessment of her own performance at the culmination all her mandates at the time of election were first term, where to her achievements. Although, this appraisal wasn’t compared conducted objectively, it still lays out some performance metrics. A guide for managers in applying WHO performance competencies will be issued and recognition has been issued. A policy on rewards a guide to help supervisors manage performance shortly. Furthermore, is in the final stages of development. A global eLearning platform will be launched in September this year. for the development of a management Proposals being evaluated. currently are programme No information available publicly is a code of conduct and extensive rules regulations There governing WHO staff, performance management Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? The leader has a defined Is the leader subjected to annual performance appraisal? or benefits tied to Is remuneration the outcomes of performance management programme? coaching and Is the leader offered development opportunity to address weaknesses over time? 3 4 III. 1 2 3

Evaluation of Organizational Structures that Enable Effective Leadership 57 It was generally lauded that the Director-General It was generally lauded that the Director-General of self-evaluation, but this started the process as should be expanded to the regional-directors an wants to create well. The Director-General independent evaluation system for her position at a later stage as well. was not challenged at the The Director-General since she had proved process re-election previous candidate, the opportunity to herself to be a strong other candidates existed. put forward is no authority to change the mandate away There health, for example to topics such as trade or from agriculture. meetings of the Executive Board Extra-Ordinary have been called in the past for changing strategies. tre’ tre’ ê These 327 There is also a There 329 Therefore, it can be said Therefore, These are relatively un- relatively These are 330 328 to meet changing circumstances 331 shift strategic priorities The Director-General presented her original priorities and mandate presented The Director-General re- when she was standing up for election her first term. At the a document with appointment for her second term, she presented self-assessment of how well she performed on those priorities. This process. the re-nomination was taken into account through not specifically performance management, but how well the were organization, under her leadership, tackled the major challenges. is opportunity to stand up against the incumbent Director- There and each candidate is evaluated on process General in a re-election have the same objective scale as is used for a new election. There being challenged by other been cases of sitting Regional Directors qualified candidates. specified in the organization, functions” that are some “core are There and that of Work that have been set out in the General Programme cover a 10 year period (2006–2015). changeable since this has been decided as long-term ‘raison d’ DG has specified her own the current of the organization. However, functions, and has asked to be these core priorities stemming from evaluated on these specific priorities. “I want my leadership to be judged by the impact of our work on health two populations: Chan women and the people of Africa.” – Margaret being undertaken, of which a major component process WHO reform global health health outcomes, in line with the agreed is improved WHO is working with process, priorities. As a strand in the reform to focus its its member states to set priorities for work in order effectively. activities and deliver more that both the leadership and member states do have a certain functions into strategic priorities according to tailor the core discretion and national/international priorities. realities to current to facilitate implementation of new priorities as is a process there Yes, discussed above. Every DG can prioritize certain specific strategies/ during is a process and there diseases or aspects during their tenure, can have input into member-states Health Assembly where the World the strategic priority setting. is based on transparent processes and metrics processes is based on transparent re-election re-election Leadership performance management Are by the full criteria considered membership in the re-appointment process? other qualified candidates Are in the re-election considered process? The leader has the authority and mechanisms to Does the MO/IO have processes that facilitate implementation of new strategic priorities? Does the leader have authority to shift strategic priorities in light of external changes? 1 IV. 2 V. 1 2

58 Effective Leadership in International Organizations The Director General is trying to ensure a fully- General is trying to ensure The Director the Financing Dialogue financed budget, through some parts of the budget are Initiative. Currently, According under-funded. and some are over-funded General’s Director to Ian Smith, Executive Director, the critical elements to a financed budget is Office, and alignment. It is essential that we predictability know how much money we have, and when it. Additionally, it is important that the will receive work, aligned with the organization’s are resources and activities. The WHO staffing with the regions, is developing a portal which will be transparent, they have been where showing all the resources, spent and to what they have been dedicated to. This is not a unique idea (UNDP has multi-donor trust fund website as an example), but will be something new for WHO. is another survey called the “Perception There Survey” that is led by the Department of Communications, led by an external agency. It is widely internally and widely discussed by shared Generals and the Regional the Assistant Director Directors. system management performance the of part is This (PMDS) and is taken into account informally. through-out the organization through-out 76% of WHO’s funds are ‘voluntary contributions’ with most of them funds are 76% of WHO’s being highly specified as to which department or health intervention (http://whqlibdoc.who.int/pb/2012-2013/ they should be used for. PB_2012%E2%80%932013_eng.pdf ) the organization conducts and publishes a “stakeholder survey” Yes, which includes both external The stakeholders and internal staff. available on the website. It seems published in a report, are results the 2012 survey, one of key findings was that “21% that from of external have doubts regarding and 25% of internal respondents the to ensure ability to take the necessary measures WHO’s voiced independence of its public health experts, similar proportions industry inappropriate independence from concerns about WHO’s report with the survey findings is also on influence.” The full website. (http://www.who.int/about/who_perception_survey_2012.pdf) attract, retain and develop talent attract, retain What percentage of resources are set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? The leader is expected to Is the leader assessed on mentoring staff? and coaching of subordinate Does the organization take staff Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results 3 VI. 1 2

Evaluation of Organizational Structures that Enable Effective Leadership 59 WHO is fairly conservative in this matter. There is There WHO is fairly conservative in this matter. for engaging in non- of reform an ongoing process state actors. The categories of engagement are stakeholders the following: 1) Governance (where can engage in governance matters of WHO), 2) official Collaboration (joint work-plan, projects, ad- with NGOs etc.), 3) Consultation (more relations development hoc, due-diligence, conflict of interest, sharing of information, expertise and of standards, know-how), 4) Finance (non-state actors can make a contribution to WHO), 5) Contracts given the private sector for carrying out specific pieces of work. of regular WHO is committed to a program evaluations, maintaining independence, and engaging in independent evaluations. the Executive will conduct and evaluate these for the WHO. Board internal/external evaluations engage with diverse range of stakeholders MO/IO has structures that encourage management to MO/IO has structures that engage executive management thoroughly with VII. VIII.

60 Effective Leadership in International Organizations Evaluation of Organizational Structures that Enable Effective Leadership 61

335 or implementation of WTO agreements. The secretariat does, however, make does, however, The secretariat or implementation of WTO agreements. and to implementing the work programme internal management decisions relevant by members. budget approved Length of leadership mandate once. Four years; can be renewed Income budget for 2013 was CHF 197.2 million. Total Number of staff 2013). 77 countries (as of March 639, from In the secretariat: History of leadership is open and competitive, in that any The WTO leadership appointment process a candidate. An understanding exists among member country can put forward countries that the position should alternate between developed and developing country members. 1993-1995). Division and Ireland, first DG was Peter Sutherland (from WTO’s consensus on a new of members to reach the failure deadlock arising from (Italy, 1995-1998) and a in the shortened term of Renato Ruggiero DG resulted (New Zealand, 1998/9-2002) and between Mike Moore term-sharing agreement Supachai Panitchpakdi (Thailand, 2002-2005). The subsequent two DGs were in 2009) and Roberto Azevêdo Pascal Lamy (France, 2005-2013; reappointed (Brazil, 2013-present). that selection on the grounds Ruggiero’s In 1994-1995, the United States resisted the appointment of an Italian would violate informal understanding that European economies. In the late 1990s, one of the large European DGs should not be from in a decision to split the term between two DGs – among members resulted discord a developing country. a developed and the other from one from trajectory Current position as DG started on 1 September 2013. In 2014, he intends to Azevêdo’s including on governance and organizational review, undertake a comprehensive strategy (but essentially on staffing). 332 334 All 160 member countries may participate in all councils 333 World Trade Organization (WTO) Trade World k. Organization the WTO is multilateral and Trade, on Tariffs Replacing the General Agreement and ensuring that the rules of forum for negotiating global trade agreements applied and enforced. correctly international trade are Governance organization – all The WTO describes itself as “a rules-based, member-driven the outcome of negotiations made by Members, and the rules are decisions are among Members”. and the committees and committees, except the dispute settlement procedures the foresees While WTO agreement for plurilateral agreements. responsible in several specific situations, use of votes when consensus cannot be reached Members make decisions consensus dominates the decision-making process. to new rules and their implementation, as well organizational matters related and on the appointment of such as the budget and activities of secretariat, (DG). the director-general which must meet at least once every two years, is The Ministerial Conference, can take decisions on all matters under any of most important. The conference in Geneva The General Council meets regularly the multilateral trade agreements. all member governments, from to carry out WTO functions; it has representatives The WTO and has the authority to act on behalf of ministerial conference. to the various WTO further councils and over 20 committees relevant has three members make these groups, activities; through and the secretariat’s agreements day-to-day work. and carry out the organization’s decisions, monitor progress a trade negotiations committee, Although not a formal part of the WTO structure, by the DG, was established members in context of Doha chaired of negotiations, WTO members, Round of trade negotiations. In the process informal various committee chairs and the DG convene a range of different comprised of Rooms”, which are such as “Green and processes, groups various configurations of members with the aim influencing negotiations and building consensus. This can then facilitate decision-making in the formal WTO committees. support to WTO members is headed by the DG and provides The secretariat activities. As only members make decisions, the on all of the organization’s completion content, the to regard with powers decision-making no has secretariat

62 Effective Leadership in International Organizations

9 3 3

341

338 Other factors published with the notice are of reference Terms for DG, i.e. with “Vacancy inviting candidatures Notice”; this is posted on-line. the Enhanced Integrated Framework Interestingly, organization for the delivery of (a WTO-related technical assistance and capacity building to developing countries) has several publicly available TORs. of involvement by Members varies The degree widely depending on their capacities in terms of and their economic/political human resources significance in the system. Although many informal of and formal opportunities exist, the degree engagement and influence varies. Some groups, collectively weigh in for such as the African Group, advances. particular candidates as the process During the two months of consensus building undertaken by the Chair of General Council, and opportunities for participation the transparency pursued by the depend on the specific processes and criteria by which Chairs The process Chair. the from removed conclude that candidates are short-list is not always transparent. of all 340 consensus 337

336 Published rules of the the role not available online. However, are of reference Terms available terms in WTO legal texts, which are DG is defined in broad on the website. A 2002 General Council decision in (document WT/L/509) qualifications for the job. required defines made by Decisions – including DG selection are all Members can be involved in the leadership members. Therefore, process. appointment and reappointment The “2002 decision” describes in detail the leadership appointment to commence 9 It lays out a clear timeframe for process process. the expiry of an and be completed 3 months before months before term. Only member countries can nominate candidates, incumbent’s who must be their own nationals, and nominations made within one month of the start process. qualifications for the description of the required is an agreed There the diversity of WTO’s post, with “the desirability of reflecting membership in successive appointments to the post” also listed as CVs, an explicit factor to be taken into account. Candidates provide to the WTO General Council. and meet with make presentations the Chair of Council, Then in the final two months of process assisted by the Chair of Dispute Settlement Body and Policy Review Body as Facilitators, consult with members and Trade for the Council to vote is a provision seeks to build a consensus. There in the appointed time. if a consensus cannot be reached nominated WTO members officially appointment process, In the recent 1 to 31 from 9 candidates for the post of new Director-General on their December 2012. All the candidates made a presentation vision for the WTO at a General Council meeting in January 2013. The concluded with a General Council meeting on 14 appointment process to appoint Roberto Azevêdo May 2013, at which the recommendation was approved. as the new Director-General searches and tests for specific, relevant competencies against clearly defined criteria through an inclusive, exhaustive process an inclusive, exhaustive relevant competencies against clearly defined criteria through and tests for specific, searches leadership selection process Does the MO/IO publish criteria/ for leadership terms of reference online? Indicator The of the membership What percentage is involved in leadership selection and in practice? re-election a time-bound, published, Is there for leadership exhaustive process selection that weighs competence against the published criteria? I. 1 2 3

Evaluation of Organizational Structures that Enable Effective Leadership 63

347 349

342 The Director-General plans to The Director-General 346 348 345 The debates over the role of the DG and The debates over the role appointees’ scope for taking leadership complicate the ability of leader to set clear expectations reluctant themselves and goals. Many members are to see the DG take an action or initiative that is not simply the implementation of decisions taken by mission Membership. Given debates on the broader and purpose of the organization limit political to explicitly lay out a scope for the Director-General clear agenda for action or change. to is expected to report The Director-General General Council Member States at the regular and activities of the meetings on progress A further instrument is the elaboration of Secretariat. WTO Annual Report, supervised by the DG, which and activities of the summarizes the programmes organization. members, are Executive management, like all staff values. The expected to abide by the code of core seek authorization that staff Rules also require Staff for outside activities and disclose any potential financial interests. values of the WTO Secretariat The code of core to sign the required are exists internally and all staff upon entry into the organization. oath of office The newly appointed DG has signed the Oath of values is A training manual on WTO core Office. available to all staff. assessed by the DG performances are Directors’ the annual performance DDG through or respective evaluation report. starting undertake an objective cascading exercise next year. scheme for is a Performance Rewards While there members, this is not applicable to Directors, staff General and the DG. Deputy Directors

presentation of their vision all candidates nominated for ,

344 This is also done through the annual This is also done through 343 programme and receives annual feedback on performance and receives programme to outline his vision and goals, as well formal which are transparent and consistent with MO/IO’s overarching goals and which facilitates leadership overarching and consistent with MO/IO’s transparent which are statement budget proposal to members. budget proposal No official procedure in place. Although the new DG generally delivers procedure No official a for is no process of the General Council, there obligations, in front setting clear performance expectations or review. As part of the selection process Yes. make a the position of Director-General for the WTO at a General Council, and again upon their appointment. For example, Roberto Azevêdo gave his vision speech to the General Council on 9 September. policy only available internally. The disclosure internally. ethics is only circulated the code of core However, Yes. subjected. are however, Not at the level of DG. Directors, No evidence. performance management performance expectations The leader has clear accountability Do the leaders set clear performance expectations for themselves, which and consistent? transparent are an expectation that the Is there goals of leader translates overarching organization into a manageable and clear strategy? Is the leader obliged to disclose conflicts of interest? to a Is the leader obliged to adhere published code of ethics? The leader has a defined Is the leadership subjected to annual performance appraisal? or benefits tied to Is remuneration the outcomes of performance management programme? 1 1 II. 2 3 4 III. 2

64 Effective Leadership in International Organizations

351

Coaching and executive management sessions by to senior management offered external coaches are (for Senior Executive Retreats upon request. have been introduced DG; DDGs and Directors) to discuss openly and collectively the WTO’s and performance management programme development feedback. In practice, at the end of nomination period in 2009, Pascal Lamy was the only candidate and re-appointed. to meet changing circumstances 350 shift strategic priorities Yes, upon request. Yes, No evidence. nominated. if new candidates are Yes, is based on transparent processes and metrics processes is based on transparent re-election re-election Is the leader offered coaching Is the leader offered and development opportunities to weaknesses over time? address Leadership performance management criteria Are by the full membership in considered process? the re-election other qualified candidates Are in the re-election considered process? The leader has the authority and mechanisms to 1 3 IV. 2 V.

Evaluation of Organizational Structures that Enable Effective Leadership 65

354 Views on the desirable scope for leadership and vary independent action by the Director-General among Member States and depending on the of WTO issue. Given the legally-binding nature and their economic significance, most agreements, object to the notion that Members resolutely DG should have any decision-making authority with to negotiation, formation or implementation respect some have argued that the of WTO rules. However, clearly specified should be more WTO DG ‘s role – enabling for to the negotiation process with regard to formally propose instance the Director-General or and push for political solutions to problems deals to bring negotiations a close. In broker practice, the DG is involved actively in process of the process of consensus-building through Room meetings, mini- chairing informal Green ministerial and the trade negotiations Committee. These informal practices meet with varying degrees by Members given the of satisfaction and approval among Members on what substantive differences should be and provisions kinds of agreements pursued, and over the objectives of organization as a whole. Pascal as Director-General, During his tenure strategic leadership to Members Lamy provided and advocated on the importance of Aid for Trade, to Members the importance of this initiative. The achievement of the launch this initiative is widely Similarly, in attributed to that Director-General. economic crisis, the the face of most recent an initiative by the approved Director-General in protectionism to monitor increases Secretariat among Member States. Although the DG did not of the Membership for approval formally approach this action, most Members appear to concur that part. on the DG’s this was a useful strategic effort

At the start of 2008 crisis Lamy initiated a monitoring 353 352 protectionism, which was subsequently validated by the Members; protectionism, on trade finance to assess needs he also convened an expert group in the market and inform potential actions to ease access trade finance. The organization is member-driven. Hence, it is the members who set The organization is member-driven. impact the DG can have an indirect the strategic priorities for WTO. Yet strategic priorities. on Members’ consideration of the Organization’s Pascal Lamy, convened a panel For example, former Director-General, report “The of trade in April 2012. The panel on defining the future in April The Challenges of Convergence” was released of Trade: Future 2013. No evidence. Does the leader have authority to shift strategic priorities in light of external changes? Does the MO/IO have processes that facilitate implementation of new strategic priorities? 1 2

66 Effective Leadership in International Organizations

356 with informally 360 Some Members do provide extra budgetary Some Members do provide and to the to the WTO Secretariat resources Enhanced Integrated Framework for capacity building to developing countries, some of which are earmarked for specific training, technical assistance, activities in particular countries. or Aid for Trade interacts The WTO Director-General the heads of many international organizations. The WTO is not a specialized UN agency. However the head of the WTO does participate in UN Chief meeting. The WTO DG participates Executive Board but without a clear mandate in the G20 process, DG approved Member States. The previous from pursuit of work with the OECD, the Secretariat’s the WHO and other international agencies on joint and monitoring. The WTO also pursues research joint activities with organizations such as WIPO on the implementation of technical assistance related to its agreements. Many WTO Committees include IOs among their for is no specific process observers, but there the WTO to engage with heads of other IOs. This bilateral meetings involving normally occurs through the DG or other senior WTO staff. by external auditors on The organization is reviewed regular matters on a resources finance and human submitted to the are basis, whose audit reports Committee of Budget, Finance and Administration for review.

358 359 357 355 internal/external evaluations through-out the organization through-out engage with diverse range of stakeholders No earmarked budget. The WTO derives its income from Members’ No earmarked budget. The WTO derives its income from based on a formula that takes into account contributions, which are of international trade. Miscellaneous income is minor share each one’s observers and sales). (contributions from satisfaction. on staff reports regular are there Yes, No evidence. attract, retain and develop talent attract, retain What percentage of resources are set are of resources What percentage aside for special initiatives decided by by a subset of the full and controlled membership? The leader is expected to Does the organization take staff satisfaction surveys to assess staff and performance do leaders of these surveys? utilize the results Is the leader assessed on mentoring staff? and coaching of subordinate MO/IO has structures that encourage leadership to event is the Public Forum, which attracts about 1,000 participants. During press The major annual outreach remarks. Beyond annual events, such as the public forum regularly presents briefings, the Director-General and meetings with parliamentarians, the organization does not have formal mechanisms intended to ensure industry, civil society or parliaments. Rather these occur through interaction with stakeholders from regular stakeholders. or the relevant arranged by the Secretariat participation in ad hoc meetings and conferences for input stakeholder consultations with the DG or accreditation no formal mechanisms for recurring are There open only to committees are regular into the work of organization or ongoing negotiations. The WTO’s Member States, although stakeholders can now observe selected parts of dispute settlement proceedings. MO/IO has structures that engage leadership thoroughly with WTO has an as well members’ contributions. Interestingly, given in annual report, are Detailed expenditures to the members and published in Annual Report. presented results are This audit’s internal audit office. 1 3 VI. 2 VII. VIII.

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Evaluation of Organizational Structures that Enable Effective Leadership 69 Endnotes

1. Jupille, Mattli and Snidal (2013).

2. This occurs in the OECD. Source: email correspondence with an OECD senior official, 17 June 2014.

3. Please send your input to Shubhra Saxena Kabra, World Economic Forum at [email protected]

4. See: http://apps.who.int/gb/ebwha/pdf_files/EB130/B130_ID1-en.pdf.

5. See: http://www.wto.org/english/thewto_e/dg_e/dg_selection_process_e.htm.

6. See: http://www.ft.com/cms/s/0/70f0e628-4fa2-11e2-a744-00144feab49a.html#axzz2ZxevSMrI.

7. The terms of appointment were published in a press release on 5 July 2011. See: http://www.imf.org/external/np/sec/ pr/2011/pr11270.htm.

8. See: http://www.imf.org/external/hrd/eo.htm.

9. See: http://www.imf.org/external/hrd/ombuds.htm.

10. See: http://www.ieo-imf.org/ieo/pages/IEOPreview.aspx?mappingid=y3p1dhO74YQ%3d&img=i6nZpr3iSlU%3d.

11. See: http://www.ieo-imf.org/ieo/files/completedevaluations/05212008BP07_01.pdf.

12. See: http://www.ieo-imf.org/ieo/files/completedevaluations/05212008BP07_01.pdf.

13. Martinez-Diaz (2009).

14. Unlike the private sector, remuneration and benefits in international organizations are, in most cases, not tied to performance management indicators. Instead, such organizations set fixed salaries for all staff, including their leadership. Those within the UN system – and even some outside it, such as IOM – follow a standardized pay scale. Although benefits may vary, they are generally determined by the cost of living in the respective locations of headquarters (e.g. New York, Geneva, Washington DC) rather than by a leader’s performance.

15. For example, Pascal Lamy in 2009. See: http://www.wto.org/english/news_e/news09_e/tnc_chair_report_29apr09_e. htm.

16. For example, Donald Kaberuka’s statement in 2005. See: http://www.afdb.org/en/news-and-events/article/statement- at-the-swearing-in-ceremony-by-the-afdb-president-donald-kaberuka-11258/.

17. Martinez-Diaz (2008), p. 388.

18. Martinez-Diaz (2008) looked at the following: IMF, World Bank, ADB, AfDB, IDB and EBRD.

19. UN (2008). See: http://www.un.org/News/briefings/docs/2008/080204_Barcena.doc.htm [accessed 18 September 2014].

20. MOPAN (2012).

21. For instance, Paul Wolfowitz, President, World Bank, resigned in 2007 over an alleged conflict of interest in respect to employment.

22. See: http://siteresources.worldbank.org/BODINT/Resources/CodeofConductforBoardOfficialsDisclosure.pdf.

23. UN (2013). See: http://icsc.un.org/resources/pdfs/general/standardsE.pdf [accessed 6 September 2014].

24. AfDB also has a code of conduct for staff (1999), and one for leaders (2007).

25. UN (2006). See: http://www.un.org/en/ethics/disclosure.shtml [accessed 18 September 2014].

26. UN (2008). See: http://www.un.org/News/briefings/docs/2008/080204_Barcena.doc.htm [accessed 18 September 2014].

27. The list of 2012 disclosures is available from: http://www.un.org/sg/ethicalstandards/PublicDisclosure_2012.shtml.

28. See also: New Zealand State Services Commission (2012). Leadership Success Profile. Wellington: State Services Commission.

29. Interview with the senior staff development officer, 26 July 2013.

70 Effective Leadership in International Organizations 30. UNHCR has developed an integrated management assessment framework and introduced a performance management system, which includes 360-degree feedback from external stakeholders for all staff. This was in response to staff criticism that promotions were “not based on skills and suitability”, but on “seniority and influence of sponsors” (UK Department for International Development [DFID], Unpublished Working Paper on UNHCR: 19). For more on the survey, see: Turk and Eyster (2010).

31. EBRD (2012). Annual report [online]. See: http://www.ebrd.com/downloads/research/annual/ar12ei.pdf.

32. Interview with senior IOM official, 31 July 2013.

33. UNHCR (2013a).

34. Turk and Eyster (2010), p. 170; UNHCR (2013b).

35. UNDP (2011). Budget Estimates, 11.

36. In 2012, IOM’s total revenue was $1.2 billion, and only 0.7% or $9 million was unearmarked. See: IOM (2013). IOM Financial Report for the Year Ended 31 December 2012. Geneva: IOM.

37. Interview with senior IOM official, 22 July 2013, and interview with senior IOM officials, 2 Sept 2013.

38. This consisted of: 20% unrestricted, 32% broadly earmarked (i.e. at the regional, subregional or thematic level) and 47% tightly earmarked (country or sector). Source: UNHCR (2012).

39. See: http://www.who.int/mediacentre/events/2013/key_principles_WHO_financing_dialogue.pdf.

40. MOPAN (2013), Annual Report 2012. See: http://www.mopanonline.org/upload/documents/MOPAN_Annual_ Report_2012.pdf.

41. See: http://www.ieo-imf.org/ieo/pages/Origins.aspx.

42. For an example of the response in 2008, see: http://www.ieo-imf.org/ieo/files/completedevaluations/05212008CG_ management.pdf.

43. For the Agreement Establishing the African Development Bank, 2011 edition, see: http://www.afdb.org/fileadmin/ uploads/afdb/Documents/Legal-Documents/Agreement%20Establishing%20the%20ADB%20final%202011.pdf.

44. This number increased with the creation of South Sudan in 2011. It will increase again, to 80, once the processing of Luxembourg’s application for membership is complete.

45. For the 2013-2022 strategy, see: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB_ Strategy_for_2013%E2%80%932022_-_At_the_Center_of_Africa%E2%80%99s_Transformation.pdf 46 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Legal-Documents/Agreement%20Establishing%20the%20 ADB%20final%202011.pdf

47 See p.180 of the Annual Report 2012: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/ Annual%20Report%202012.pdf

48 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Legal-Documents/Agreement%20Establishing%20the%20 ADB%20final%202011.pdf

49 For example, see Kaberuka’s statement 2005: http://www.afdb.org/en/news-and-events/article/statement-at-the- swearing-in-ceremony-by-the-afdb-president-donald-kaberuka-11258/

50 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB%20Strategy%20for%202013– 2022%20-%20At%20the%20Center%20of%20Africa’s%20Transformation.pdf)

51 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB%20People%20Strategy%20 for%202013-2017.pdf

52 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Legal-Documents/Agreement%20Establishing%20the%20 ADB%20final%202011.pdf

53 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB%20People%20Strategy%20 for%202013-2017.pdf

Evaluation of Organizational Structures that Enable Effective Leadership 71 54 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB%20People%20Strategy%20 for%202013-2017.pdf

55 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Legal-Documents/Agreement%20Establishing%20the%20 ADB%20final%202011.pdf

56 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Legal-Documents/Agreement%20Establishing%20the%20 ADB%20final%202011.pdf

57 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Corporate-Procurement/Departmental_Annual_Reports/ AfDB%20TFAR%202010%20Final.pdf

58 http://www.afdb.org/en/news-and-events/article/afdb-president-declares-2010-successful-but-momentous-year-at- annual-meetings-opening-ceremony-8143/

59 AfDB People Strategy 2013-2017 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/ AfDB%20People%20Strategy%20for%202013-2017.pdf

60 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/AfDB%20Strategy%20for%202013– 2022%20-%20At%20the%20Center%20of%20Africa’s%20Transformation.pdf

61 Framework for enhanced engagement with civil society organizations 2012 http://www.afdb.org/fileadmin/uploads/ afdb/Documents/Policy-Documents/Framework%20for%20Enhanced%20Engagement%20with%20Civil%20 Society%20Organizations.pdf

62 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/Framework%20for%20Enhanced%20 Engagement%20with%20Civil%20Society%20Organizations.pdf

63 MOPAN evaluation of AfDB 2012 http://www.mopanonline.org/upload/documents/MOPAN_2012_AfDB_Final_Vol_1_ Issued_December_2012.pdf; http://www.mopanonline.org/upload/documents/MOPAN_2012_AfDB_Final_Vol_2_ Issued_December_2012.pdf ; http://www.ausaid.gov.au/partner/Documents/afdb-assessment.pdf

64 The other funds are the Technical Assistance Special Fund, Japan Special Fund, Pakistan Earthquake Fund, Regional Cooperation and Integration Fund, Climate Change Fund and Asia Pacific Disaster Response Fund, as well as grant co-financing activities. The ADB also manages a number of trust funds, including the Japan Scholarship Program and Japan Fund for Poverty Reduction. ADB Financial Profile 2013,Asian Development Bank, 2013, p. 27-33. See: http:// www.adb.org/sites/default/files/adb-financial-profile-2013.pdf.

65 Those powers reserved for the board of governors include the following: –– Admit new members and determine the conditions of their admission –– Increase or decrease the bank’s authorized capital stock –– Suspend a member –– Decide appeals from interpretations or applications of this agreement given by the board of directors –– Authorize the conclusion of general agreements for cooperation with other international organizations –– Elect the bank’s director and president –– Determine the remuneration of the directors and their alternates, and the salary and other terms of the president’s service contract –– Approve the general balance sheet and the bank’s profit-and-loss statement, following review of the auditor’s report –– Determine the reserves and the distribution of the bank’s net profits –– Amend this agreement –– Decide to terminate the bank’s operations and distribute its assets –– Exercise such other powers as are expressly assigned to the board of governors in this agreement Source: Agreement Establishing the Asian Development Bank. Manila: Asian Development Bank, 1966, Chapter VI, Article 28. See: http://www.adb.org/sites/default/files/pub/1965/charter.pdf.

66 Ibid; on term limits: Article 30 (3).

67 Asian Development Bank Financial Profile 2013, p. 6-8.

72 Effective Leadership in International Organizations 68 Sinclair, J. “Asian Development Bank: Time for new leadership”. Embassy, 13 March 2013. See: http://www. embassynews.ca/opinion/2013/03/12/asian-development-bank-time-for-new-leadership/43434; Sinclair, J. “Asian Development Bank presidency: looking beyond Japan”. Guardian, 22 April 2013. See: http://www.theguardian. com/global-development-professionals-network/2013/apr/22/asian-development-bank-japan-president; Bernes, T. Strengthening International Financial Institutions to Promote Effective International Cooperation. CIGI Papers, No. 13, February 2013. Waterloo: Centre for International Governance Innovation. See: http://www.cigionline.org/sites/default/ files/CIGI_Paper_13.pdf.

69 For Eswar Prasad’s ADB publications, see: http://www.adbi.org/viewcontact.php?contactid=2091§ionID=217.

70 Sender, H. “Bankers fear Chinese push to head ADB”. Financial Times, 28 February 2013. See: http://www.ft.com/ cms/s/0/0df9d2c8-81d9-11e2-ae78-00144feabdc0.html#axzz362W8CKl7.

71 Jiwei, L. “China’s Address”. 47th Annual Meeting of the Board of Governors, Kazakhstan, Astana. 2014. Asian Development Bank; see: http://www.adb.org/sites/default/files/annualmeeting/2014/gov/PRC_47th_AM_GS-17.pdf.

72 Anderlini, J. “China Expands Plans for World Bank Rival”. Financial Times, 24 June 2014. See: http://www.ft.com/ cms/s/0/b1012282-fba4-11e3-aa19-00144feab7de.html#axzz3GKKD6HtZ ; Smith, G. “China aims to break U.S. hold in Asia with rival to World Bank”. Fortune, 25 June 2014. See: http://fortune.com/2014/06/25/china-aims-to- break-u-s-hold-in-asia-with-rival-to-world-bank/.

73 Pilling, D. “Japan head of ADB welcomes rival Chinese fund”. Financial Times, 29 May 2014. See: http://www.ft.com/ cms/s/0/66a56628-e581-11e3-a7f5-00144feabdc0.html#axzz362W8CKl7.

74 Wilson, E., Rowley, A. and Gilmore, S. “New Chinese-led development bank seen as threat to ADB.” Emerging Markets, 3 May 2014. See: http://www.emergingmarkets.org/Article/3337351/New-Chinese-led-development-bank- seen-as-threat-to-ADB.html. The difficulty of China increasing its quota was also confirmed in an interview by Kazu Sakai, ADB Director of Strategy and Policy. Sakai noted that such a change would be politically difficult, given the United States’ interest in preventing an increase in Chinese influence within the institution, and especially vis-à-vis Japan with whom it has a close relationship.

75 Nakao, T. “Closing Statement at the 46th Annual Meeting of the Board of Governors”. 46th Annual Meeting of the Board of Governors, Asian Development Bank. Manila, 5 May 2013.

76 Nakao, T. “Opening Address”. 47th Annual Meeting of the Board of Governors, Asian Development Bank. Astana, 4 May 2014. See: http://www.adb.org/news/speeches/reforming-adb-strengthen-operations-ground-and-better- service-region?ref=annual-meeting/2014/speeches.

77 Ownership as of 2012: Japan (15.6%), United States (15.6%), China (6.4%), India (6.3%), Australia (5.8%), Remaining 62 members (50.3%). Annual Report 2012. Rep. Manila: Asian Development Bank, 2012. Web. http://www.adb.org/ sites/default/files/adb-annual-report-2012.pdf

78 The election of the most recent President has brought this trend under intense scrutiny. See: John Sinclair. “Asian Development Bank: Time for New Leadership.” Embassy [Ottawa] 3 Mar. 2013. Web. http://www.embassynews.ca/ opinion/2013/03/12/asian-development-bank-time-for-new-leadership/43434; John Sinclair. “Asian Development Bank Presidency: Looking beyond Japan.” Guardian [London] 22 Apr. 2013. Web. http://www.theguardian.com/ global-development-professionals-network/2013/apr/22/asian-development-bank-japan-president; Thomas Bernes. Strengthening International Financial Institutions to Promote Effective International Cooperation. Working paper no. 13. Waterloo: Centre for International Governance Innovation, 2013. CIGI Papers. Web. http://www. cigionline.org/sites/default/files/CIGI_Paper_13.pdf

79 Yasutomo, Dennis. “Japan and the Asian Development Bank: Multilateral Aid Policy in Transition.” Japan’s Foreign Aid. Ed. Bruce Koppel and Robert Orr. Westview, 1993, p. 318.

80 Ibid, p. 44.

81 Lim & Vreeland (2013).

82 STRATEGY2020: The Long-Term Strategic Framework of the Asian Development Bank 2008-2020. Rep. Manila: Asian Development Bank, 2008. Web. http://www.adb.org/sites/default/files/Strategy2020-print.pdf

Evaluation of Organizational Structures that Enable Effective Leadership 73 83 ADB Results Framework. Rep. Manila: Asian Development Bank, 2008. Web. http://www.adb.org/sites/default/files/ pub/2008/r166-08.pdf

84 2012 Development Effectiveness Review. Rep. Manila: Asian Development Bank, 2012. Web. http://www.adb.org/ sites/default/files/defr-2012.pdf

85 Link to Annual Evaluation Reviews: http://www.adb.org/site/evaluation/resources/1222

86 Link to Reports: http://compliance.adb.org/dir0035p.nsf/alldocs/BDAO-7Y65HQ?OpenDocument&expandable=4

87 Public Communications Policy: Disclosure and Exchange of Information. Rep. Manila: Asian Development Bank, 2011. Web. http://www.adb.org/sites/default/files/pcp-2011.pdf

88 Nakao, Takehiko. “Address to 88th Meeting of the Development Committee.” 88th Meeting of the Development Committee of the World Bank. Washington, DC. 12 Oct. 2013. Web. http://www-wds.worldbank.org/external/default/ WDSContentServer/WDSP/IB/2013/10/16/000442464_20131016104728/Rendered/PDF/818700BR0State0C00Box 379845B000Copy.pdf

89 Takehiko Nakao. “Opening Address.” 47th Annual Meeting of the Board of Governors. Astana. 4 May 2014. Web. http://www.adb.org/news/speeches/reforming-adb-strengthen-operations-ground-and-better-service- region?ref=annual-meeting/2014/speeches

90 Code of Conduct. Rep. Manila. Asian Development Bank (June 2011): http://www.adb.org/documents/code-conduct

91 INDEPENDENT EVALUATION AT ASIAN DEVELOPMENT BANK GUIDELINES TO AVOID CONFLICT OF INTEREST IN INDEPENDENT EVALUATIONS. Rep. Manila: Asian Development Bank, 2012. Web. http://www.adb.org/sites/ default/files/Guidelines-Conflict-of-Interest-18December2012.pdf

92 Guidelines for Gifts and Entertainment. Rep. Manila: Asian Development Bank, 2008. Web. http://www.adb.org/sites/ default/files/Guidelines-Gifts-Entertainment.pdf

93 GUIDELINES ON ACCESS DURING INVESTIGATIONS TO RECORDS, EMAILS AND DOCUMENTS. Rep. Manila: Asian Development Bank, 2008. Web. http://www.adb.org/sites/default/files/Guidelines-Access-during-investigations. pdf

94 Guidelines on Form and Content of Allegations. Rep. Manila: Asian Development Bank, 2008. Web. http://www.adb. org/sites/default/files/Guidelines-Form-Content-Allegations.pdf

95 Code of Conduct. Rep. Manila: Asian Development Bank, 2011. Web. http://www.adb.org/sites/default/files/code-of- conduct.pdf

96 Annual Review of Salary and Benefits for International Staff, National Staff, and Administrative Staff. Rep. Manila: Asian Development Bank, 2013. Web. http://www.adb.org/sites/default/files/salary-benefits-review-2013.pdf, p. 5

97 Interview with ADB Director of Policy and Strategy.

98 Agreement Establishing the Asian Development Bank. Manila: Asian Development Bank, 1966, Chapter VI, Article 34, Point 5.

99 Daniel Yew Mao Lim and James Vreeland. “Regional Organizations and International Politics: Japanese Influence over the Asian Development Bank and the UN Security Council.” World Politics 65.1 (2013), p. 44.

100 Ibid.

101 The former director-general speaking to Lim & Vreeland in 2010, however, noted that if projects don’t acquire Japanese support, they do not proceed to the Board in the first place (Ibid, p. 44).

102 Work Program and Budget Framework 2013-2015. Rep. Asian Development Bank, Oct. 2012. Web. http://www.adb. org/sites/default/files/work-program-budget-framework-2013-2015_0.pdf

103 Funds and Resources. Asian Development Bank (2013): http://www.adb.org/site/funds/main

74 Effective Leadership in International Organizations 104 Interview with ADB Director of Policy and Strategy

105 Olivier Serrat. Engaging Staff in the Workplace. Rep. Asian Development Bank, Oct. 2010. Web. http://adbdev.org/ sites/default/files/publications/27586/file/engaging-staff-workplace.pdf

106 Strengthening Participation for Development Results. Rep. Manila: Asian Development Bank, 2012. Web. http://www. adb.org/sites/default/files/strengthening-participation-development-results.pdf, p. 20-30.

107 ADB Perceptions Survey (2013), p. 7.

108 Independent Evaluation website: http://www.adb.org/site/evaluation/attributes-independence

109 See, for example, a recent assessment of the ADB: Assessment of the Asian Development Bank. Rep. MOPAN, 2013. Web. http://www.mopanonline.org/upload/documents/Main_findings-_ADB_2013_assessment.pdf

110 International Aid Transparency Initiative. Asian Development Bank Becomes IATI Signatory. N.p., 30 Jan. 2013. Web. http://www.aidtransparency.net/timeline/asian-development-bank-becomes-iati-signatory;

111 Basic Documents of EBRD, http://www.ebrd.com/pages/research/publications/institutional/basicdocs.shtml

112 Basic Documents of EBRD, http://www.ebrd.com/pages/research/publications/institutional/basicdocs.shtml

113 Interview with Senior EBRD Officials, May 2 2014

114 http://www.ft.com/cms/s/0/70f0e628-4fa2-11e2-a744-00144feab49a.html#axzz2ZxevSMrI

115 http://www.cgdev.org/blog/cgd-europe-asks-who-should-be-ebrds-next-president

116 EBRD annual report 2012, http://www.ebrd.com/downloads/research/annual/ar12ei.pdf

117 Interview with Senior EBRD Officials, May 2 2014

118 EBRD annual report 2012, http://www.ebrd.com/downloads/research/annual/ar12ei.pdf

119 Interview with Senior EBRD Officials, May 2 2014

120 Interview with Senior EBRD Officials, May 2 2014

121 EBRD Financial Report 2011 (pp. 72-76): http://www.ebrd.com/downloads/research/annual/fr11e.pdf.

122 EBRD annual report 2012, http://www.ebrd.com/downloads/research/annual/ar12ei.pdf.

123 “The EBRD and Civil Society in 2012/2013.” European Bank for Reconstruction and Development (May 2013): http:// www.ebrd.com/downloads/research/factsheets/csoE.pdf

124 http://www.ebrd.com/downloads/about/compas06.pdf

125 Memorandum From the Under Secretary of the Treasury (Walker) to President Nixon. US Department of State Archives (12 December 1970). See: http://history.state.gov/historicaldocuments/frus1969-76v04/d43.

126 Mander, B. “Mutual aid works for Latin America”. Financial Times, 24 September 2012. See: http://im.ft-static.com/ content/images/c1628ce2-03a3-11e2-bad2-00144feabdc0.pdf.

127 Humphrey, C. and Michaelowa, K. “Shopping for Development: Multilateral Lending, Shareholder Composition and Borrower Preferences”. In World Development, Vol. 33, April 2013, pp. 142-155.

128 Regulations for the Election of the President of the Bank: http://idbdocs.iadb.org/wsdocs/getdocument. aspx?docnum=753132

129 Nancy Birdsall. “The World Bank and the Inter-American Development Bank: Fit for the 21st Century?” Center for Global Development no. 039 (April 2014).

Evaluation of Organizational Structures that Enable Effective Leadership 75 130 A. Schotter (1981). “The Paradox of Redistribution: Some Theoretical and Empirical Results.” Power, Voting, and Voting Power (ed. M.j. Holler). Physica-Verlad, Wurzburg; M.O. Hosli (1996). “Coalitions and Power: Effects of Qualified Majority Voting in the Council of the European Union.” Journal of Common Market Studies 34(2): 255-273.

131 Jonathan Strand (2003). “Measure voting power in an international institution: the United States and the inter- American development bank.” Economics of Governance (4): 19-36.

132 Birdsall (2014), p. 7.

133 Agreement establishing the Bank: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=555080

134 Regulations for the Election of the President of the Bank: http://idbdocs.iadb.org/wsdocs/getdocument. aspx?docnum=753132

135 Agreement establishing the Bank: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=555080

136 Institutions for Growth and Social Welfare (March 2011): http://idbdocs.iadb.org/wsdocs/getdocument. aspx?docnum=36399223

137 Building Opportunity for the Majority (2007). Inter-American Development Bank (Washington D.C.): http://www.iadb. org/news/docs/BuildingOpp.pdf

138 Code of Ethics and Professional Conduct (2012): http://idbdocs.iadb.org/wsdocs/getdocument. aspx?docnum=37198737

139 Code of Ethics and Professional Conduct (2012): http://idbdocs.iadb.org/wsdocs/getdocument. aspx?docnum=37198737

140 Annual Report (2012): http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=37614856

141 Annual Report (2012): http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=37614856

142 Proposal for allocation of FSO resources (2013-2014): http://idbdocs.iadb.org/wsdocs/getdocument. aspx?docnum=37360465

143 Krasner, Stephen D. Power Structures and Regional Development Banks. International Organization, Vol. 35, No. 2, Spring, 1981: http://www.jstor.org/stable/2706477

144 Human Capital Strategy (2011): http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=36290863

145 Strategy for Promoting Citizens Participation in Bank Activities (2004): http://idbdocs.iadb.org/wsdocs/getdocument. aspx?docnum=483088

146 See: http://www.imf.org/external/pubs/ft/aa/index.htm.

147 Interview with a current IMF official, October 2013, Washington DC.

148 http://www.imf.org/external/np/sec/pr/2011/pr11270.htm

149 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008CG_main6.pdf

150 http://www.imf.org/external/hrd/eo.htm

151 http://www.imf.org/external/hrd/ombuds.htm

152 http://www.imf.org/external/np/eval/2005/111805.htm

153 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008BP07_01.pdf

154 http://www.imf.org/external/pubs/ft/aa/index.htm

155 http://www.imf.org/external/pubs/ft/ar/2012/eng/pdf/ar12_eng.pdf

76 Effective Leadership in International Organizations 156 http://www.imf.org/external/pubs/ft/aa/index.htm

157 Interview with a current IMF official, October 2013, Washington, DC

158 Interview with a former IMF official, June 2013, Oxford

159 http://www.imf.org/external/np/pp/eng/2013/101213b.pdf

160 http://www.imf.org/external/np/pp/eng/2013/112513.pdf

161 Interview with a current IMF official, October 2013, Washington, DC

162 http://www.imf.org/external/hrd/code.htm

163 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008CG_main4.pdf

164 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008CG_main3.pdf

165 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008CG_main4.pdf

166 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008CG_main6.pdf

167 Interview with a current IMF official, October 2013, Washington, DC

168 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008CG_main3.pdf

169 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008BP07_01.pdf

170 Interview with a current IMF official, October 2013, Washington, DC

171 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008CG_main3.pdf

172 Interview with a current IMF official, October 2013, Washington, DC

173 Interview with a current IMF official, October 2013, Washington, DC

174 http://www.imf.org/external/np/eval/2005/111805.htm

175 See example of the response in 2008: http://www.ieo-imf.org/ieo/files/completedevaluations/05212008CG_ management.pdf

176 http://www.imf.org/external/np/sec/pn/2013/pn1364.htm 177 IOM. 2013. Facts and Figures, available at: http://www.iom.int/files/live/sites/iom/files/About-IOM/docs/facts_figures_ en.pdf; and IOM. 2012. Financial Report: 18.

178 IOM. 2012. Human Resources Report, Annex. Geneva: IOM; and IOM. 2013. Facts and Figures. Geneva: IOM.

179 Reinalda, B. 2011. “Secretaries-General of International Organizations and their Career Development: An Analysis of Nine Humanitarian IGOs”. In Paper for the World Conference on Humanitarian Studies, 2-5 June, at Tufts University, Medford, MA, USA.

180 IOM. 2009. Review of the Organisation Structure of IOM. Geneva: IOM.

181 Interview with senior IOM official, 22 July 2013, and interview with senior IOM officials, 2 September 2013. Swing made performance management and ownership of the organization by member states top priorities. He has put strong emphasis on proper use of the performance appraisal system, which is currently being updated to account for organizational changes of the past five years. The DG has also established good measures to ensure that HR policy responds to the organization’s needs; implemented a mandatory rotation process; revamped staff regulations to harmonize conditions of service; taken a zero-tolerance approach to fraud, corruption and unethical behaviour; and taken steps to ensure good gender distribution. (DFID. Working Paper on IOM, 17).

182 See IOM Constitution. 1989. Article 18 (1).

Evaluation of Organizational Structures that Enable Effective Leadership 77 183 The DG is paid at the salary rate of an Assistant Secretary General. Interview with senior IOM official, July 31 2013 and Interview with senior IOM officials, September 2 2013.

184 IOM 1989. Constitution, Article 18(2).

185 See also IOM Organizational Structure, http://www.iom.int/cms/about-iom/organizational-chart accessed 4 August 2014.

186 See for example: F. Georgi, 2011. For the Benefit of Some: The International Organization for Migration and its Global Migration Management. In The Politics of International Migration Management. M. Geiger and A. Pecoud. Basingstoke and New York, Palgrave Macmillan: 45 - 72.

187 DFID, Multilateral Review 2011. Ensuring Maximum Value for Money for UK aid through multilateral organizations, March 2011, DFID: London: 1987.

188 Interview with senior IOM official, July 31 2013.

189 For a listing of IOM’s evaluations see: http://www.iom.int/cms/en/sites/iom/home/about-iom-1/organizational- structure/evaluation/external-evaluations.html

190 The four core areas are detailed in the UNDP strategic plan, 2008-2011: Accelerating global progress on human development. The UNDP also manages the UN’s “resident coordinator” system to ensure in-country coordination between UN agencies, and publishes an annual report on human development. These are reformulated in the most recent strategic plan, and three areas of work are highlighted: inclusive and effective democratic governance; resilience; and sustainable development pathways. See: UNDP. Changing with the World – UNDP Strategic Plan: 2014-2017. New York: UNDP, 20.

191 For more on the selection of board members, see: UNDP. Information note about the Executive Board of UNDP, UNFPA and UNOPs, http://www.undp.org/content/undp/en/home/operations/executive_board/information_ noteontheexecutiveboard [accessed 19 September 2014].

192 UN. 1994. General Assembly Resolution 48/162, Article 22. New York: UN.

193 The UNDP’s expenditure was $4.53 billion for development activities (provisional for 2012). UNDP. 2013. UNDP Cumulative Review. New York: UNDP, 25.

194 See: http://www.undp.ro/undp/human-resources/ [accessed 19 September 2014]; and UNDP. Changing with the World – UNDP Strategic Plan: 2014-2017. New York: UNDP, 5.

195 MOPAN. 2012. Assessment of Organisational Effectiveness and Reporting on Development Results: UNDP, 3.

196 UNDP. 2013. Cumulative Review. New York: UNDP, 24.

197 Ibid.

198 Rogers, K. “UNDP cuts HQ staff, creates new lower-level jobs”. Devex, 3 June 2014. See: https://www.devex.com/ news/undp-cuts-hq-staff-creates-new-lower-level-jobs-83612 [accessed 14 July 2014]; and Santamaria, C. “UNDP to establish crisis response unit”. Devex, 16 June 2014. See: https://www.devex.com/news/undp-to-establish-crisis- response-unit-83693 [accessed 14 July 2014].

199 The researchers were unable to find these online and no interview participants were aware of one. However, the MOPAN review 2012 UNDP is rated well for ‘key documents available to the public’ MI 1.3. As 77% of survey respondents rate it as adequate or above in transparency.

200 This policy was established in 1958 for UNDP’s predecessor – the Special Fund - and continues to apply for the Administrator. See: General Assembly Resolution 1240 (XIII) Establishment of the Special Fund, 1958, New York. GA Resolution 2029 (XX) Consolidation of the Special Fund and the Expanded Programme of Technical Assistance in a United Nations Development Programme. It was subsequently outlined in UN General Assembly. 2005. ‘Appointments to fill vacancies in subsidiary organs and other appointments: confirmation of the appointment of the Administrator of the United Nations Development Programme’ Note by the Secretary General, A/59/240, 3 May 2005.

201 Interview with former UNDP Administrator, 5 August 2013. Interview with Craig Murphy, 5 August 2013.

78 Effective Leadership in International Organizations 202 Interview with former UNDP Administrator, 5 August 2013. Interview with Craig Murphy, 5 August 2013.

203 Interview with former UNDP Administrator, 5 August 2013.

204 Interview with former senior UNDP staff member, 7 August 2013.

205 Martinez-Diaz, Leonardo 2009. “Boards of directors in international organizations: A framework for understanding the dilemmas of institutional design.” Review of International Organizations 4(4): 403. MOPAN donors at headquarters were asked about the extent to which ‘senior management demonstrates leadership on results management. More than 70% rated UNDP as adequate or above on this indicator’. MOPAN, UNDP Report, MOPAN, 2012: 21.

206 Interview with Craig Murphy, 5 August 2013.

207 UNDP. Changing with the World UNDP Strategic Plan: 2014 - 2017. UNDP, New York.

208 UNDP, 2011, Budget estimates: p.11.

209 UN. 2006. Secretary General’s Bulletin ‘Financial Disclosure and Declaration of Interest Statements’, ST, SGB/2006/6. 10 April 2006. Available at http://www.un.org/en/ethics/disclosure.shtml accessed 1 August 2013.

210 The list of 2012 Disclosures is available at http://www.un.org/sg/ethicalstandards/PublicDisclosure_2012.shtml accessed 5 August 2013.

211 UN. 2013. Standards of Conduct for the International Civil Service. UN: New York. Available at http://www.undp.org/ content/undp/en/home/operations/transparency/overview.html UNDP also has an Ethics office (established in 2007), which creates UNDP’s ethics policy and coordinates with UN ethics committee.

212 UN salary and allowance details are available at http://www.un.org/depts/OHRM/salaries_allowances/salary.htm accessed 5 August 2013.

213 UNDP. 2013. Cumulative Review. UNDP: New York: 24.

214 Interview with Craig Murphy, 5 August 2013; Interview with former UNDP senior staff member, 28 August; Email correspondence with UNDP senior staff member, Feb 27, 2014.

215 General Assembly Resolution 1240 (XIII) Establishment of the Special Fund, 1958, New York, article 21. This Resolution stipulated the conditions for UNDP’s predecessor, the Special Fund, which the UNDP inherited. These were: ‘The Special Fund shall be administered by a Managing Director under the policy guidance of the Governing Council. The Managing Director shall have the over-all responsibility for the operations of the Fund, with sole authority to recommend to the Governing Council projects submitted by Governments’. For more on the Board’s functions see: UN General Assembly. 1994. Resolution 48/162, Article 3. New York: United Nations.

216 As stipulated by the Resolution: ‘projects shall be undertaken only at the request of a government or group of governments eligible to participate in the Special Fund’. General Assembly Resolution 1240 (XIII) Establishment of the Special Fund, Article 31, 1958, New York. The resolution stipulates other tasks such as: ‘the managing director shall establish and maintain close and continuing working relationships with the specialized agencies concerned with those fields of activity in which the Special Fund will operate, and with the International Atomic Agency…’. The Managing director shall be responsible for the evaluation of project requests…and authorized to contract the services off other agencies. The Managing Director shall make appropriate arrangements to follow the execution of projects. The Managing Director shall report to the Governing Council on the status of projects and the financial position of the projects and programmes’.

217 Interview with former UNDP Administrator, 5 August 2013. Interview with Craig Murphy, 5 August 2013.

218 Interview with former UNDP senior staff member, 7 August 2013.

219 The percentage of earmarked contributions were calculated from the UNDP Cumulative Review as follows. Total contributions: 4.64 (regular and other resources) + 1.33 (bilateral earmarked) + 1.53 (multilateral earmarked) + 0.93 (programme contributions) = 8.43 billion; Total earmarked: 1.53 + 1.33 = 1.88 billion and Percentage Earmarked = 1.88/8.43 or 22%. UNDP. 2013. UNDP Cumulative Review. UNDP: New York, p.25.

220 The UNDP Strategic Review 2014 – 2017 highlights declining core financing as a one of UNDP’s top challenges. See: UNDP. 2014. ‘Changing the World, UNDP Strategic Review 2014 – 2017’, UNDP: 8. For a clear overview of UNDP’s Evaluation of Organizational Structures that Enable Effective Leadership 79 financing sources see Craig N. Murphy and Stephen Browne. ‘UNDP: Reviving a practical Human Development Organization’. Future United Nations Development System, Briefing 6, June 2013: 2.

221 Craig N. Murphy and Stephen Browne. ‘UNDP: Reviving a practical Human Development Organization’. Future United Nations Development System, Briefing 6, June 2013: 2.

222 UNDP. Changing with the World UNDP Strategic Plan: 2014 - 2017. UNDP, New York.

223 UNDP. 2011. UNDP Institutional Budget Estimates for 2012 – 2013. Executive Board of the UNDP, UNFPA and the UNOPS: New York: 24 – 27.

224 MOPAN. 2012. Assessment of Organisational Effectiveness and Reporting on Development Results, UNDP. Xiii.

225 As part of a broader humanitarian response, UNHCR is typically the cluster lead for protection, shelter and camp management/camp coordination in IDP situations. UNHCR’s total “population of concern” (including refugees and internally displaced persons) is 35.8 million. UNHCR. 2013. Displacement – The New 21st Century Challenge: UNHCR Global Trends 2012. Geneva: UNHCR, 3.

226 UN General Assembly Resolution 428 (V), 14 December 1950, Annex, UNHCR Statute.

227 UNHCR holds annual plenary meetings with ExCom and regular meetings with its standing committee throughout the year. For information on UNHCR, ExCom members and how to apply, see: http://www.unhcr.org/pages/49c3646c89. html [accessed 19 September 2014]. With its membership growing rapidly, ExCom has become increasingly unwieldy as a governing committee (interview with Guy Goodwin-Gill, 2 August 2013).

228 UNHCR’s ExCom also submits an annual report to the third committee. Although it was created by ECOSCO, it functions like a subsidiary body of the General Assembly. See Betts, A., Loescher, G. and Milner, J. 2012. UNHCR: The Politics and Practice of Refugee Protection. Second Edition. Abingdon: Routledge, 108-109.

229 UNHCR. 2013. Global Report 2012. Geneva: UNHCR.

230 Email correspondence with UNHCR, 11 November 2013.

231 Turk, V. and Eyster, E. 2010. “Strengthening Accountability in UNHCR”. In International Journal of Refugee Law, 22:2, 159–172.

232 Loescher, G. 2002. The UNHCR and World Politics: A Perilous Path. Oxford: Oxford University Press.

233 BBC News. 2005. “Lubbers quits over UN sex claims”. 20 February 2005. See: http://news.bbc.co.uk/1/hi/world/ europe/4282333.stm [accessed 19 September 2014].

234 Goodwin-Gill, G. 1991. “Developments”. In International Journal of Refugee Law, 3, 120.

235 DFID. 2011. Multilateral Aid Review. London: DFID, 198.

236 UNHCR. 2013. Report of the United Nations High Commissioner for Refugees, Part II, Strategic Review pursuant to General Assembly Resolution 58/153. Geneva: UNHCR.

237 Ibid. The new Global Service Centre based in Budapest, Hungary has centralized administration and support functions at a reduced cost, compared with having these staffed in Geneva.

238 DFID. 2011. Multilateral Aid Review. London: DFID, 198. Note that some donors are supportive of UNHCR taking a more expansionist role in humanitarian coordination and natural disasters.

239 Email correspondence with the UNHCR executive office, 11 November 2013.

240 Main sources: Interview with Jane McAdam, 24 July 2013; Interview with Guy Goodwin-Gill, 2 August 2013 and Email Correspondence, 20 May 2014; Interview with UNHCR Personnel Administration, Payroll and Performance Management, Human Resources (Budapest), 26 July 2013; Interview with UNHCR Senior Staff Development Officer (Budapest), 26 July 2013; Interview with UNHCR Chef du Cabinet (Geneva), 30 July 2013.

80 Effective Leadership in International Organizations 241 UNHCR. 1950. UNHCR Statute. Chapter II, Functions of the High Commissioner, paragraphs 8 – 12.

242 UNHCR. 1950. UNHCR Statute. Chapter III, Organization and Finances, Article 13. The UN Secretary General has a contract with the High Commissioner which outlines his salary and other job details. Telephone interview with Chef du Cabinet (Geneva), 30 July 2013. However the HC is elected by the General Assembly and, in principle, should not be subject to authority or direction by the SG. Email correspondence with International Refugee Law Expert, 19 May 2014.

243 Email correspondence with UNHCR Executive Office, 11 November 2013. Also note that UNHCR does make much of its policy and other terms of reference available online. They do have a draft of new terms of reference for Assistant High Commissioner (protection) on the website as this was a newly created post (2005).

244 For more detail on this see G. Goodwin-Gill. 1991. “United Nations High Commissioner for Refugees: Election or Appointment?” International Journal of Refugee Law (3): 121-4.

245 UNHCR. 1950. UNHCR Statute. Chapter III, Organization and Finances, paragraph 13.

246 Betts, Loescher and Milner 2011: 111.

247 Betts, Loescher and Milner 2011: 111.

248 Interview with Guy Goodwin-Gill, 2 August, 2013. The Secretary General on this occasion engaged in extensive consultations with Member states and as no single candidate emerged he submitted two candidates to member states. See: G. Goodwin-Gill. 1991. “United Nations High Commissioner for Refugees: Election or Appointment?” International Journal of Refugee Law (3): 121-4.

249 NGOs argued that candidates should be interviewed and their biographies and answers were made public. Betts, Loescher and Milner 2011: 111.

250 Interview with Guy Goodwin-Gill, 2 August, 2013.

251 For details on the Global Strategic Priorities see: UNHCR, UNHCR Global Appeal 2014 - 2015, http://www.unhcr. org/4ec230e916.html

252 Turk, V. and Eyster, E. 2010. ‘Strengthening Accountability in UNHCR’, International Journal of Refugee Law, 22, 2: 170.

253 UN. 2006. Secretary General’s Bulletin ‘Financial Disclosure and Declaration of Interest Statements’, ST, SGB/2006/6. 10 April 2006. Available at http://www.un.org/en/ethics/disclosure.shtml accessed 1 August 2013.

254 The list of 2012 Disclosures is available at http://www.un.org/sg/ethicalstandards/PublicDisclosure_2012.shtml accessed 5 August 2013. UNHCR established an independent Ethics Office in 2008 which reports directly to the HC. Its functions are to: provide confidential advice to staff and senior management on ethical issues (e.g. conflicts of interest; gifts; use of UN assets); promote a culture of integrity and accountability; raise awareness and develop standards and education of ethics issues; administer the financial disclosure programme; implement the policy on the protection of staff from retaliation. Executive Office of the United Nations High Commissioner’s Programme, Standing Committee. 2009. Report on the Ethics Office, EC/60/CRP.21, 24 August 2009.

255 UNHCR, 2004. Code of Conduct, 1.

256 Email correspondence with UNHCR, 11 November 2013.

257 Telephone Interview with UNHCR Chef du Cabinet (Geneva), 30 July 2013. The Global Trends Report details the numbers of ‘persons of concern’ including refugees, IDPs, stateless and other displaced peoples. Note that evaluating UNHCR and the High Commissioner’s performance solely on these numbers is problematic as they are affected by factors beyond UNHCR’s control.

258 Telephone Interview with UNHCR Chef du Cabinet (Geneva), 30 July 2013.

259 Telephone Interview with UNHCR Chef du Cabinet (Geneva), 30 July 2013.

260 Telephone Interview with UNHCR Chef du Cabinet (Geneva), 30 July 2013. Note that UNHCR develops its own independent guidelines based on these. Interview with UNHCR Human Resources Official, Budapest, 26 July 2013.

Evaluation of Organizational Structures that Enable Effective Leadership 81 261 UN salary and allowance details are available at http://www.un.org/depts/OHRM/salaries_allowances/salary.htm accessed 5 August 2013.

262 Telephone Interview with UNHCR Chef du Cabinet (Geneva), 30 July 2013.

263 Through the GLC, UNHCR hopes to ‘measure more systematically the impact of learning on staff to ensure that approaches used add real value’ and are adjusted to remain relevant (Turk and Eyster, 2010: 171). UNHCR have a Senior Staff Development Officer, Head, Management, Leadership & Communications based in Budapest. They develop and convene a leadership programme for senior staff (such as heads of missions). The role of the Senior Staff Development Officer is to ‘support the work of the management/leadership and external relations Unit, with a primary responsibility for the conceptualization, design, development and delivery of management and leadership related learning programmes for various levels of management. S/he is accountable for pro-actively supporting the learning culture in UNHCR by aligning effective learning with institutional goals’. See UNHCR, Job Description, Senior Staff Development Officer (Management and Leadership), 2012 available online. They provide training up D1 level Interview with Senior Staff Development Officer, 26 July 2013.

264 Interview with Guy Goodwin-Gill, 2 August 2013.

265 Telephone Interview with UNHCR 30 July 2013.

266 The High Commissioner’s functions are outlined in the UNHCR Statute, Chapter II, paragraphs 6 – 12. The Statute also states that ‘The High Commissioner shall be entitled to present his views before the General Assembly, the Economic and Social Council and their subsidiary bodies’ and that he ‘shall report annually to the General Assembly through the Economic and Social Council…’ UNHCR. 1950. UNHCR Statute. Paragraph 11.

267 Interview with Guy Goodwin-Gill, 2 August 2013.

268 These shifts are captured in: UNHCR. 2013. Report of the United Nations High Commissioner for Refugees, Part II, Strategic Review pursuant to General Assembly Resolution 58/153. UNHCR: Geneva.

269 Email correspondence with UNHCR Executive Office, 11 November 2013.

270 Interview with UNHCR Chef du Cabinet (Geneva), 30 July 2013.

271 UNHCR. 2013. Report of the United Nations High Commissioner for Refugees, Part II, Strategic Review pursuant to General Assembly Resolution 58/153. UNHCR: Geneva.

272 UNHCR established a committee to develop action plans and carry-out survey recommendations in 2011. Interview with Senior Staff Development Officer, 26 July 2013.

273 Turk, V. and Eyster, E. 2010. ‘Strengthening Accountability in UNHCR’, International Journal of Refugee Law, Vol. 22, 2: 159 – 172. Staff surveys, according to DFID’s working paper, found that staff are dissatisfied with promotions and postings as it is felt that promotions are ‘not based on skills and suitability’ but ‘seniority and influence of sponsors’ (DFID, Unpublished Working Paper on UNHCR: 19). To increase staff confidence in the transparency and fairness of recruitment and promotion UNHCR has developed an integrated management assessment framework and introduced a performance management system, which includes 360 degree feedback from external stakeholders for all staff. (DFID, Unpublished Working Paper on UNHCR: 19). This suggests senior management are responding to staff surveys.

274 Telephone interview with UNHCR Chef du Cabinet (Geneva), 30 July 2013.

275 IBRD articles of agreement; see: http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/ORGANIZATION/BO DEXT/0,,contentMDK:20049557~pagePK:64020054~piPK:64020408~theSitePK:278036~isCURL:Y,00.html.

276 IDA articles of agreement and by-laws; see: http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/ ORGANIZATION/BODEXT/0,,contentMDK:21353441~pagePK:64020054~piPK:64020408~theSitePK:278036~isCUR L:Y,00.html.

277 IFC articles of agreement; see: http://www.ifc.org/wps/wcm/connect/CORP_EXT_Content/IFC_External_Corporate_ Site/About+IFC/Articles+of+Agreement/.

278 MIGA convention; see: http://www.miga.org/documents/miga_convention_november_2010.pdf.

82 Effective Leadership in International Organizations 279 ICSID convention; see: https://icsid.worldbank.org/ICSID/ICSID/RulesMain.jsp.

280 WB organization chart; see: http://siteresources.worldbank.org/EXTABOUTUS/Resources/bank.pdf.

281 World Bank projects and operations; see: http://www.worldbank.org/projects.

282 World Bank. Annual Report 2013; see: https://openknowledge.worldbank.org/bitstream/ handle/10986/16091/9780821399378.pdf?sequence=1, p. 6.

283 Thorton, P. “World Bank Revamp”. Guardian, 18 November 2013. See: http://www.theguardian.com/global- development/poverty-matters/2013/nov/08/world-bank-job-cuts-jim-yong-kim.

284 World Bank. Annual Report 2012; see http://siteresources.worldbank.org/EXTANNREP2012/ Resources/8784408-1346247445238/AnnualReport2012_En.pdf.

285 Kahler, M. 2001. Leadership Selection in Major Multilaterals. Washington DC: Institute for International Economics.

286 Rushe, D. “World Bank candidate Ngozi Okonjo-Iweala says job will go to Jim Yong Kim”. Guardian, 16 April 2012. See: http://www.theguardian.com/business/2012/apr/16/world-bank-president-jim-kim.

287 Lowrey, A. “World Bank, Rooted in Bureaucracy, Proposes a Sweeping Reorganization”. The New York Times, 6 October 2013. See: http://www.nytimes.com/2013/10/07/business/international/world-bank-rooted-in-bureaucracy- proposes-a-sweeping-reorganization.html?_r=0.

288 Harding, R. “World Bank: Man on a mission”. Financial Times, 7 April 2014. See: http://www.ft.com/cms/ s/0/012f15d6-b8fa-11e3-98c5-00144feabdc0.html#axzz31WQwF8z4.

289 World Bank Archives. “Robert Strange McNamara”. See: http://web.worldbank.org/WBSITE/EXTERNAL/ EXTABOUTUS/EXTARCHIVES/0,,contentMDK:20502974~pagePK:36726~piPK:437378~theSitePK:29506,00.html.

290 Harding, R. “World Bank: Man on a mission”. Financial Times, 7 April 2014. See: http://www.ft.com/cms/ s/0/012f15d6-b8fa-11e3-98c5-00144feabdc0.html#axzz31WQwF8z4.

291 Humphrey, C. and Michaelowa, K. “Shopping for Development: Multilateral Lending, Shareholder Composition and Borrower Preferences”. In World Development, Vol. 33, April 2013, pp. 142-155.

292 Farnsworth, E. “The BRICS Try to Bank”. U.S. News & World Report, 18 July 2014. See: http://www.usnews.com/ opinion/blogs/world-report/2014/07/18/brics-development-bank-could-challenge-world-bank-and-imf.

293 http://siteresources.worldbank.org/BODINT/Resources/PresContConfCopy.pdf

294 Steven Weisman. “Wolfowitz Resigns, Ending Long Fight at World Bank.” The New York Times (May 18th, 2007): http://www.nytimes.com/2007/05/18/washington/18wolfowitz.html?pagewanted=all

295 Kahler, Miles. Leadership Selection in Major Multilaterals. Institute for International Economics; Washington, DC 2001

296 Interview with a former official, June 2013, Oxford

297 Minutes of the WBG Board meetings http://web.worldbank.org/external/projects/main?pagePK=64256109&piPK=64 818889&theSitePK=40941&menuPK=51146024

298 Interview with a current official, October 2013, Washington, DC

299 World Bank Archives. The Presidency of Robert McNamara: http://web.worldbank.org/WBSITE/EXTERNAL/ EXTABOUTUS/EXTARCHIVES/0,,contentMDK:20502974~pagePK:36726~piPK:437378~theSitePK:29506,00.html;.

300 WBG Strategy for 2030 approved in April 2013 http://www.worldbank.org/content/dam/Worldbank/document/WB- goals2013.pdf

301 Interview with a former official, June 2013, Oxford

302 http://siteresources.worldbank.org/BODINT/Resources/CodeofConductforBoardOfficialsDisclosure.pdf

Evaluation of Organizational Structures that Enable Effective Leadership 83 303 See Steven R. Weisman, ‘Wolfowitz Resigns, Ending Long Fight at World Bank’ New York Times, May 18, 2007, http://www.nytimes.com/2007/05/18/washington/18wolfowitz.html?pagewanted=all&_r=0

304 http://siteresources.worldbank.org/INTETHICS/Resources/ethics_code_2013-Mar13-CRA.pdf.

305 IEG evaluation of the World Bank’s organizational effectiveness http://ieg.worldbankgroup.org/Data/reports/matrix_ eval.pdf

306 Interview with a former official, June 2013, Oxford

307 WBG Annual Report 2012 http://siteresources.worldbank.org/EXTANNREP2012/ Resources/8784408-1346247445238/AnnualReport2012_En.pdf

308 Harding, “World Bank: Man on a mission,” Financial Times.

309 Interview with a current official, October 2013, Washington, DC

310 See Note xii.

311 http://web.worldbank.org/WBSITE/EXTERNAL/DEVCOMMEXT/0,,pagePK:64000837~piPK:64001152~theSitePK:27 7473~contentMDK:23470472,00.html

312 Interview with a former official, July 2014

313 IEG evaluation of trust funds (2011): http://ieg.worldbankgroup.org/Data/reports/tf_eval.pdf

314 Interview with a current official, October 2013, Washington, DC

315 http://www.nytimes.com/2013/10/07/business/international/world-bank-rooted-in-bureaucracy-proposes-a- sweeping-reorganization.html?_r=4&

316 Interview with a current official, October 2013, Washington, DC

317 Interview with a former official, June 2013, Oxford

318 MOPAN Annual Report 2012 on the World Bank http://www.mopanonline.org/upload/documents/MOPAN_2012_ WB_Final_Vol_1_Issued_December_2012_1.pdf http://www.mopanonline.org/upload/documents/MOPAN_2012_ WB_Final_Vol_2_Issued_December_2012.pdf.

319 World Bank Group Strategy, attached for the October 12, 2013 meeting of the Development Committee: http://web. worldbank.org/WBSITE/EXTERNAL/DEVCOMMEXT/0,,pagePK:64000837~piPK:64001152~theSitePK:277473~cont entMDK:23470472,00.html.

320 World Bank. DIME: http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDEVIMPEVAINI/0,,contentMDK:234 22972~pagePK:64168445~piPK:64168309~theSitePK:3998212,00.html

321 Interview with a former official, July 2014

322 http://apps.who.int/gb/ebwha/pdf_files/EB130/B130_ID1-en.pdf http://apps.who.int/gb/ebwha/pdf_files/EB132/B132_R14-en.pdf

323 http://apps.who.int/gb/ebwha/pdf_files/EB130/B130_ID1-en.pdf

324 http://www.who.int/employment/staff_regulations_rules/EN_staff_regulations_and_staff_rules.pdf

325 http://apps.who.int/gb/ebwha/pdf_files/WHA66/A66_4-en.pdf - page 5

326 http://apps.who.int/gb/ebwha/pdf_files/WHA66/A66_4-en.pdf - page 5

327 http://www.who.int/dg/Report_card_cover_28_06.pdf

328 http://www.who.int/about/role/en/index.html, http://whqlibdoc.who.int/publications/2006/GPW_eng.pdf

84 Effective Leadership in International Organizations 329 http://www.who.int/about/agenda/en/index.html

330 http://www.who.int/about/who_reform/programme_priority/en/index.html

331 http://www.who.int/about/who_reform/programme_priority/en/index.html

332 Van Grasstek, C. 2013. The History and Future of the World Trade Organization, Part V. See: https://www.wto.org/ english/res_e/booksp_e/historywto_14_e.pdf.

333 “Agreement Establishing the World Trade Organization”. See: http://www.wto.org/english/docs_e/legal_e/04-wto.pdf.

334 World Trade Organization (WTO). “WTO legal texts”. See: http://www.wto.org/english/docs_e/legal_e/legal_e.htm.

335 Kahler, M. 2001. Leadership Selection in Major Multilaterals. Washington DC: Institute for International Economics.

336 http://www.wto.org/english/thewto_e/dg_e/dg_selection_process_e.htm

337 http://docsonline.wto.org/imrd/directdoc.asp?DDFDocuments/t/WT/L/509.doc

338 Interview with former WTO official, July 2014

339 Interview with Carolyne Deere, July 2014

340 http://www.ieo-imf.org/ieo/files/completedevaluations/05212008BP07_01.pdf.

341 Interview with Carolyne Deere, July 2014

342 Interview with Carolyne Deere, July 2014

343 https://www.wto.org/english/news_e/news13_e/gc_09sep13_e.htm

344 WTO Annual Report 2012: http://www.wto.org/english/res_e/booksp_e/anrep_e/anrep13_e.pdf

345 Interview with Carolyne Deere, July 2014

346 Interview with a current WTO official, November 2013

347 Interview with a current WTO official, November 2013

348 Interview with a current WTO official, November 2013

349 Interview with a current WTO official, November 2013

350 Interview with a former WTO official, July 2014

351 Interview with a current WTO official, November 2013

352 http://www.wto.org/english/thewto_e/dg_e/dft_panel_e/future_of_trade_report_e.pdf

353 Interview with a former WTO official, July 2014

354 Interview with Carolyne Deere, July 2014

355 WTO Annual Report 2013: http://www.wto.org/english/res_e/booksp_e/anrep_e/anrep13_chap8_e.pdf

356 Interview with Carolyne Deere, July 2014

357 Interview with a former WTO official, July 2014

358 Interview with Carolyne Deere, July 2014

359 http://www.wto.org/english/res_e/booksp_e/anrep_e/anrep13_e.pdf

360 Interview with a current WTO official, November 2013

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